How best to close your small business?

[ezbtr]

A friend of mine has had a barber shop for a few years, and business is just drying up, not enough customers, can't afford the rent even though he works seven days a week - he and I have been talking a bit and I figure Id ask some of you guys - this business is not going to get better - it IS in CA.

How about this "

• Close the Doors and Walk Away

If the business has no assets and there are insufficient funds to continue operating, the business can just be closed. The business owner is not obligated to pay the business debts unless they have personal liability for the debts which is often obtained by a personal guarantee.
Creditors whose claims are not paid may pursue collection efforts against the business, but they will not receive any payment. If the owner is personally liable the creditors can pursue collection efforts against the owner."

 

[alldodge]

Unless there is a CA attorney in membership all info will be suspect.

You said he is paying rent and if it's not a lease, leave

 

[aspeck]

What kind of a small business? A sole proprietorship? An LLC? A Corporation? Each of these will treat liability differently. He needs an attorney to advise him.

 

[64osby]

Need to reference CA law.
In MI if there is no lease the renter gives 30 day notice and is done at that point.

 

[stresspoint]

sell up assets tools and fittings , sublet premises to another person.

sell fittings, tools and assets and start a viable business on the premises.

franchise to another person .

wear a pink shirt and purple pants and turn it into a hairdresser shop .

 

[FLATHEAD]

Sorry if I sound cynical. What your second paragraph above sounds like to me, is a person trying to find a way to skip out on his debts.

 

[The Force power]

sell up assets tools and fittings , sublet premises to another person.

sell fittings, tools and assets and start a viable business on the premises.

franchise to another person .

wear a pink shirt and purple pants and turn it into a hairdresser shop .

OR.......get better @ cutting hair

 

[FLATHEAD]

OR.......get better @ cutting hair

 

[ezbtr]

Sorry if I sound cynical. What your second paragraph above sounds like to me, is a person trying to find a way to skip out on his debts.

no