Here is a checklist of non-tax issues to consider when ending your business.
1) When you have decided to go out of business, you can stop at any time. At the end of a month, the end of the week, or on any day of the week.
2) Contact your child care licensor, your local Child Care Resource and Referral agency and your family child care association so they can update their records.
3) Contact your insurance agent for your home and car. You may be entitled to a reduced insurance rate, depending on your circumstances.
4) Contact your business liability insurance agent. You may get a refund for cancelling your insurance policy before the end of the year. Save a copy of your insurance policy until the youngest child in your program (at the time you closed your business) reaches age 21. Before then, it may be possible for a child to sue you for an injury that occurred while in your care.
5) Notify your parents, in writing, that you are closing your business. Keep copies of this notice for your records. If your contract requires you to give parents a two-week notice, do so. But, if you tell parents months in advance that you are closing your business, some parents may want to terminate earlier. Take this into consideration when deciding when to inform parents of your decision.
Part II – read my article about the tax issues involved in closing your business.
What other issues should be considered when going out of business?
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