Retiring? Here Are Your Business Obligations
When you retire, you will have certain business obligations to consider as you close down your practice. The following is an overview.
Develop an action plan and a timetable for how to manage the closing of your practice. Inventory all assets and liabilities, including work-in-progress and possible contingent liabilities.
Send bills for all work performed to date. For outstanding accounts receivable, consider realistic collection efforts. Announcing retirement before completing collection of outstanding accounts receivable reduces the likelihood of 100% collection.
Take control of all operating and client trust accounts, business assets, equipment, client directories, and premises used in the practice.
Deal with bank and creditor obligations.
Arrange to have your office space and storage space leases terminated on the necessary date. Review all insurance policies and make claims as needed.
Determine the appropriateness of maintaining a business entity for liability tax-filing purposes. Determine tax-filing requirements for both federal and state tax returns. Complete necessary requirements if your practice is a corporation and dissolution is selected. Complete state requirements regarding public notice of intent to wind down or dissolve a business.
Notify utilities, phone companies, and Internet service providers of the closing of your practice and specify dates when services should be disconnected (or transferred). Notify vendors and suppliers, such as West, LexisNexis, and others, of your intent to terminate the ongoing relationship.
File mail-forwarding instructions with the post office.
Sell, donate, or plan to move personal property such as furniture, office equipment, library materials, etc. For all property to be moved, solicit bids and negotiate pricing and specifics with the moving company. Complete your move from the office and clean up the space. Inspect the old space with the landlord and obtain a formal, written release from the space.
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