d0nnivain Posted September 1, 2019 Posted September 1, 2019 I've had it. I want out. I have decided that starting next year, Jan 2020, I'm not going to take on new clients. I will finish the work / contracts I have which will take about 2 years, then reinvent myself. DH is on board with this plan even if I don't ever work again (unlikely). He said he will get me a new Dalmatian to make it official. So how do I wrap it up? Obviously disconnect the phones; freeze my tax ID # (I don't want to cancel it in case I want to reactive the business or start another one) etc. But seriously, anybody got a check list? I may go back to the SBDC & ask them.
Blind-Sided Posted September 1, 2019 Posted September 1, 2019 (edited) Every type of biz is different. Since yours has a client base, and (sounds like) contracts... yes, just don't take on new people, and finish out your contracts. You should give your current customers a heads up, in case they need to find someone else to cover your services. DO NOT disconnect the phones, but depending on your work... don't answer a number that you don't recognize as a current customer. If it's a legitimate call for the company, they will leave a massage, and you can call them back. Don't do anything with your tax and employer ID until you are 100% done. Your accountant can deal with those when you close up. Freezing a tax id isn't the way to go. As long as it's out there, you will still have someone looking at you. (IRS) And you will still have to file a zero return to keep the IRS from bugging you. Just do a proper closing when it's all done. Besides... if you decide to start up again... you can generate a new LLC, EIDN and tax ID. But here again... talk to your accountant. Make sure your personal, and company monies are separate !!! Pay all outstanding debts before you close. After that... you will be free. Good luck. Edited September 1, 2019 by Blind-Sided 1
Author d0nnivain Posted September 1, 2019 Author Posted September 1, 2019 Clients don't need a heads up to replace me. When I finish their project, our relationship ends. It's not recurring. But there will be a plan in place if the client develops a new problem. Other than an AMEX card, the business has no debt. My plan involves taking time off & maybe being a consultant later. The existing EIN will help with that. It's kind of industry specific but I do appreciate the wisdom of what you explained Blind-Sided. I was going to leave the phone connected for 30-60 days with an outgoing message referring people to somebody else & explaining that I closed.
preraph Posted September 1, 2019 Posted September 1, 2019 Until your contracts are all spent, you just have to tell people on the phone or via email that you are no longer taking new clients. Then once your contracts are spent, you just disconnect that phone. Keep the license. Remember that there may be client calls for the next year following up about tax forms and things like that. Same thing if you have employees. So you're not done until about a year after. 1
Mr. Lucky Posted September 1, 2019 Posted September 1, 2019 I was going to leave the phone connected for 30-60 days with an outgoing message referring people to somebody else & explaining that I closed. I know it’s an old-fashioned approach, but would your clients appreciate a letter explaining your exit and referring them to other providers? I always try to build bridges, even on my way out... Mr. Lucky
alphamale Posted September 1, 2019 Posted September 1, 2019 start bringing your resume/cv up to date and identify good customers who will act as a reference for you
Foxhall Posted September 1, 2019 Posted September 1, 2019 (edited) Would any of the other providers take over your business, in a sense that you would be selling your business on or your business name on, I imagine it is a profitable business. cash in on closure as it were, I dont know the American rules, but with us, self employed people must continue to make social welfare contributions even if not trading, in order to guarantee a state pension when they reach retirement age,otherwise it is means tested. seeing as you like dogs, perhaps dog grooming could be a less stressful sideline operation in the future, Edited September 1, 2019 by Foxhall
Recommended Posts