Sole Trader:
This is the easiest structure to close. You, as the sole trader are personally responsible for all debts and liabilities accrued by the business.
To cease your business you will need to:
- Inform clients and cancel any contracts
- Inform the Tax Office, cancel ABN, PAYG etc
- Sell remaining stock
- Collect outstanding debts and pay creditors
- Cancel your business name
- Notify the bank, landlord, clients and supplier
- Cancel online contracts such as domain hosting
Partnership:
Dissolution of a partnership is best done by an accountant, but partners can dissolve the partnership themselves. All debts must be settled from all of the assets and income of the partnership. Surplus assets are then distributed to partners as agreed in the partnership agreement.
- Inform clients and cancel any contracts
- Inform the Tax Office, cancel ABN, PAYG etc
- Calculate Capital Gains Tax if applicable
- Sell remaining stock
- Collect outstanding debts and pay creditors
- Cancel your business name/registration
- Change in registered particulars form
- Notify the bank, landlord, clients and supplier
- Cancel online contracts such as domain hosting
Company:
A company remains registered as a company even after it ceases trading. While registered it is still subject to the legal requirements of a registered company, including payment of the annual review fee each year. If you have no further use for your company and it is not in financial difficulty or insolvent, you may wish to close it down, that is deregister it. A company ceases to exist on deregistration.
- Deregistering your company ASIC
- Winding up a solvent company
- Inform clients and cancel any contracts
- Inform the Tax Office, cancel ABN, PAYG etc
- Calculate Capital Gains Tax if applicable
- Sell remaining stock
- Collect outstanding debts and pay creditors
- Cancel your business name/registration
- Change in registered particulars form
- Notify the bank, landlord, clients and supplier
- Cancel online contracts such as domain hosting
