How Assets Are Disposed Of When A Business Closes
Businesses can close for all kinds of reasons including a change in the market conditions, substantial financial losses, or simply that the owner is retiring and no longer wishes to continue with their business. Whether it is any of these reasons, or some other reason, closing a business has several legal implications which is why the advice of a commercial lawyer should always be sought when closing a business.
The legalities that must be sorted of as part of the closing process will include settling all the liabilities that the business has, and the disposal of any assets the company owns. The process of disposing of the assets has several steps which include making reference to a hierarchy of the people and entities which are liable to receive payments from any funds raised from the sale of the assets.
The first stage of selling assets is to create an inventory or a list of all the assets that the company owns. These assets can be physical assets such as stock, machinery, or equipment, and they can also be intangible assets such as trademarks, copyrights, intellectual rights, and patents. Once all the assets are listed, and a value placed against them, they can then be sold.
