Thursday, March 16th, 2023

Is closing your business an option?

Black and white photograph of a shop on Oxford Street, London with a closing down sale sign

It could be the business is no longer viable. It might need more money than is available to clean out premises, order in new stock, cover missed payments.

If this is the case, maybe a managed exit is the right option.

Think carefully about this before you do it as there are different rules if you’re self employed vs being a limited company. If you’re self-employed chances are you are personally liable for any and all debts and costs suppliers might have. You could face personal bankruptcy.

If you’re a limited company you may have to appoint an administrator. And you might still be personally liable for some of the debts, particularly if you ever signed a director’s guarantee.

Managed exit is stressful, but considerably less so than an outright failure. It’s worth considering.

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My name is Ross Hori

I'm a freelance writer, designer and photographer. By day I create articles, features and reports. At night I take photos and write fiction. Find out more.