Be Sure to Dismantle Your Credit Profile When Closing a Business

For many years you have successfully managed your small business, but there does come a time in the life of every business owner when it is time to move on or to retire. If you have decided not to sell your business but have elected to close it down instead, there are several things you need to take care of to make sure you are complying with state and local laws.

One of the first items of business is to officially file a "dissolution" form with the state government office. By filing this form, your business will no longer be liable for business taxes or other filings in your state. And at the same time, you need to notify your creditors that you are not taking on any new debts. If you are closing your business due to financial problems, you will still need to make the payments to your creditors. (Unless, of course, you file for bankruptcy.)

Next, you will need to notify the business divisions of big credit reporting agencies such as Experian and Equifax of your intent to close your business. This is extremely important and should be done as soon as you have a confirmed closing date. (Also, keep an eye on your business credit report after you have closed the business to make sure that no activity is taking place.)

Finally, you should contact D&B and notify them that you are closing your doors. They will have your business credit profile on file, and it contains some very important information. That report will give a summary of your business credit history, and lets the world know if you have been paying your bills on time. Hopefully, you have kept an eye on your business credit profile over the past few years and checked it often for accuracy.