Super Important Tip of the Week: Putting Your Business on Hold

Owning your own business can be so rewarding and fulfilling! You’re able to pursue your passion, expand your horizons, build a legacy, help others, and maybe even change the world!

BUT THEN…. LIFE HAPPENS.

EVEN TO BUSINESS OWNERS.?

ESPECIALLY TO BUSINESS OWNERS.

SHOULD YOU TAKE TIME OFF FROM YOUR BUSINESS?

SOMETIMES TAKING A BREAK FROM YOUR BUSINESS IS THE PERFECT THING TO DO.

One of my clients recently came to that crossroads. A solopreneur, she continued to work a full time “day job” while growing her business. Sound familiar?

Well as you can envision, the day job was all-encompassing. She was so exhausted each day that her business got little attention. So she came to me asking if she could “put her business on hold” until she retired in a few years.

This is so common, even if your business is legally active, you may come to a point where you’re not actively promoting your business or generating revenue. It could be because your product was not right for the market, you got a new job opportunity, or a life event has slowed you down.

Then the question becomes: should you legally close down your business and relaunch it when you can devote more time? That was my client’s conundrum.

THERE IS NO LEGAL REQUIREMENT THAT YOU END AN INACTIVE BUSINESS, SO CONSIDER YOUR OPTIONS THOUGHTFULLY BEFORE MAKING A DECISION.

IN MANY STATES, YOU HAVE JUST TWO OPTIONS IF YOU WANT TO PUT YOUR BUSINESS ON HOLD FOR A FEW YEARS.

OPTION1: DISSOLUTION OF THE BUSINESS

You can dissolve the business completely and form a new business when you are ready to do so. This would involve filing Articles of Dissolution, and any tax returns. Dissolving your business means you no longer legally can conduct business, sell products, or offer your services.

OPTION 2: INACTIVATE THE BUSINESS

You can officially keep your business active with the state and county while not actually engaging in business functions.

So what does that mean? Even if your business is inactive, and you are not actually doing income producing work, if you do not want to “close up shop” completely, you will need to remain in good standing with the state and county. That means filing annual reports and filing tax returns.

How to decide? If you just need to take a break, want to keep your website, perhaps work with a handful of customers over time, keep your business legally active but operationally inactive.

Do you need help with deciding what’s best for your business legal status, we’re here for you.?

Let’s chat.? Hop on my calendar at meetwithRandi.com ??

#businessowners ? #buildyourbusiness #startabusiness #smallbusiness #legaladvice #entrepreneurship #randikarpinia