Many small businesses have struggled through the global recession and may now be facing bankruptcy because of it. If your company is facing financial ruin there are a lot of alternatives available to Canadians considering filing for bankruptcy. Some steps you can take on your own to try and prevent bankruptcy include:
- Sell some assets. Considering selling something of high-end value like a second home, car or electronics. Be sure to sort out any expenses that are associated with repairing your assets before deciding to sell.
- Set a budget. Knowing where you stand financially and allotting money to essentials will help get your finances back on track.
- Call the creditors. Try and work out some sort of arrangement for a reduction in payments or interest.
- Consolidate debts. This type of loan combines your outstanding debts into one loan. Debt consolidation can also lead to lower interest rates.
To learn about the formal alternatives to declaring bankruptcy visit the Office of the Superintendent of Bankruptcy page. If you need assistance preventing or navigating through bankruptcy, the Winflow Financial Group can help. Call us today at 1.800.956.6897.
For more information on closing or selling your company, read the articles below.
A common exit strategy to leaving a small business is simply closing the business down. If you have decided to close your business, there are various bureaucratic measures to take. Some of the things to remember when closing down a business includes:
- Voluntarily dissolve the corporation. This can be done through a resolution passed at shareholder’s meeting or through the personal representatives of the business at that time.
- If it applies, cancelling your business registration, partnership or sole proprietorship can replace dissolving a corporation.
- Close all of your payroll accounts with the Canada Revenue Agency (CRA).
- If you have dissolved your corporation, file a last tax return.
- Close your GST and HST accounts with the CRA.
- Close your PST/QST/RST accounts with the CRA.
Failure to properly shut down or dissolve a business could result in tax complications. Ensuring you have followed all of the above rules is necessary when choosing this exit strategy. T0 learn more about closing down a business, visit this government of Canada page.
If you are interested in selling your business to someone else, read this article on succession planning. To learn more about exit strategies and closing a business, contact the Winflow Financial Group. Our trained consultants can help you through all of the necessary steps involved in closing a business.
Succession planning is the decision to sell your business to someone else when you no longer feel you can run it. This exit strategy will allow your business to keep running without you and you will receive a lump sum of money for the company. Succession planning includes the sale of the business to:
- Management: This option involves letting your management team buyout the business. This is a good option because you are selling to people who know your clients, your employees and how your business works already.
- Outside interests: This exit strategy is the most popular. You may end up getting more than the appraised market value if a corporation sees potential in your business. Another company with more resources may also be able to take the business to levels you were unable to.
- Family. By transferring your business to a family member your loved ones will continue to benefit from your company. It could also require less training on your part if the family member is already familiar with your business.
Succession planning can prove beneficial when you have planned ahead, involved all parties in matters dealing with the sale and properly trained good replacements. The government of Canada offers a number of guides on succession planning here. If you need professional help deciding which exit strategy is right for you and your business contact the Winflow Financial Group to speak to a consultant today.