Closing down with Less Stress
Closing a business in Australia with no money? We may have the answer
What’s the cost of liquidating a company in Australia? A minimum $15,000, according to an estimation by ASIC*! So read on – we may have a solution.
If things haven’t gone as well as you’d liked and you need to close up, but you’ve got no money (so you can’t afford $15,000) what do you do? We may have the solution – a Formal Letter of Closure.
Letter of Closure
A formal Letter of Closure/Cessation (LOC/C) is a reliable way to limit to a minimum the cost of closing a business in Australia.
How does the LOC/C work?
- Fill out the online form as fully as possible, including basic legal information about you and the business.
- You will talk to a qualified person who will assess a summary of your affairs and can give you the correct advice.
- You will receive an engagement letter from a liquidator so you can prove that you sought appropriate advice.
- Here’s where you pay the fee. A total fixed fee of $2,200 – $4,400 with no extra charges payable. This is the start of you not spending all your good money after all the money you’ve already lost.
- An LOC/C is written for you to distribute to anyone you potentially owe money to. The formal letter includes your declaration about your inability to meet any outstanding debts of the business.
What do you Get?
- An ASIC Registered liquidator will assess a summary of your affairs and ensure that you are informed of your risks, rights and obligations.
- A written engagement letter from a trustworthy professional showing that you obtained proper advice before making your decision.
- A formal summary of the state of your company’s affairs at the time of registering for the service with thesolvers.com.au.
- Correspondence sent to your creditors, ASIC and the ATO setting out appropriate and necessary information for them to determine whether they would:
A: fund the cost of a court winding-up themselves (estimated by ASIC to be $15,000).
B: just take no further action against your company and allow it to be de-registered by ASIC. Thousands of businesses are closed this way each year.
You also get:
- Peace of mind that you have received honest and trustworthy advice.
- You will be able to have ASIC de-register your business and sleep easy.
How much does it Cost?
A total fixed fee of $2,200 – $4,400 with no extra charges payable at any time.
Letter of Closure
How do you cover the cost of liquidating a company if there’s no money left? How do you close your doors and reduce your worry and the risk of being sued or breaking the law?
It’s not possible to walk away risk worry free (for example Directors have personal liability for unpaid GST, PAYG and Super).
It isn’t a simple as closing the doors, or not answering the phone.
Many businesses that are run as a company, just allow ASIC to de-register the company, but there are risks.
The truth is, apart from the ongoing stress and worry, if you simply allow your company registration to lapse, it is possible for a creditor to re-register the business and pursue debts from you personally.
If you wait for ASIC to de-register you lose control of the time that takes. But in consultation with accountants and lawyers, the solvers.com.au can offer a $500 option to help you to project yourself.
Business Exit Experts
Thesolvers.com.au members are experts and experienced business people. Click selected profiles below to find out how they help you manage your business closure.
How it Works
- Fill out the enquiry form, including basic legal information about the business.
- A formal letter of cessation is written for you to distribute to anyone you potentially owe money to. The formal letter includes your declaration about your inability to meet any outstanding debts of the business.
- After a waiting period you will be able to de-register your business and sleep easy.
Who is it for?
- Business owners or sole traders whose businesses have closed or are likely to close without any money left to close down formally.
- If you have personal assets you want to project like a family home or director’s guarantees, this may not be for you, but you should ask us.