“I want to close the business properly”
Things haven’t gone as well as you planned and you need to close. It isn’t as simple as closing the doors or not answering the phone — but it can be done properly, with less stress.
01 · What it means
In plain English
It’s not possible to walk away risk-free — for example, directors can have personal liability for unpaid GST, PAYG and super.
Many businesses run as a company take the easy route and let ASIC de-register the company. But there are risks: if your company registration lapses, a creditor can apply to reinstate it and pursue debts. And if you wait for ASIC to de-register, you lose control of the time that takes.
Formal Letter of Closure / Cessation
The Solvers offer a formal Letter of Closure/Cessation (LOC/C) option for business owners or sole traders whose businesses have closed, or are likely to close, without any money left to close down formally.
1. Fill out the enquiry form, including basic legal information about the business. 2. A formal letter of cessation is written for you to distribute to anyone you potentially owe money to, including your declaration about your inability to meet outstanding debts. 3. After a waiting period you may be able to de-register your business.
If you have personal assets you want to protect, like a family home, or have signed director’s guarantees, this may not be for you — but you should ask us.
02 · Your options
There’s usually more than one way through
Letter of Closure / Cessation
A lower-cost formal option for businesses with no money left to close down formally.
Liquidation
The formal winding up of a company by a registered liquidator.
Structured close-down
A planned exit with advisory support, protecting what can be protected.
Director’s Advocate
Someone in your corner through liquidation or wind-up.
03 · This week
What to do this week
- Don’t just stop answering the phone. Silence makes things worse.
- Keep your books and records — you’ll need them.
- Stop taking deposits or credit you can’t honour.
- Talk to us about which closure path fits your situation.
The information on this website is general in nature and does not take into account your circumstances. It is not legal, financial or tax advice.