When is the Best Time to Liquidate My Company?
Deciding when to liquidate a company can be challenging. Many factors play a role in the decision and whether you move forward soon with the process. There are several details to discuss and analyse before placing your company into liquidation.
Assessing Whether the Company is Solvent or Insolvent
Before moving further in the process, the company has to be identified as solvent or insolvent. This is to choose which method would be best for the closing of your firm. On our website, we have a one-minute assessment that we encourage you to take to see whether your company is insolvent or solvent.
Members Voluntary Liquidation
Depending on the state of your company, you have a few options to close and liquidate. If your company is solvent, you can embark on Members Voluntary Liquidation. This is the process where your firm pays its debts and closes its doors while also potentially paying stockholders.
Voluntary Liquidation v. Court Liquidation
If your company is deemed insolvent, you have two options. The first option is a Creditors Voluntary Liquidation. In this step, you appoint a registered liquidator to manage your assets and pay your debts to creditors.
The second option for your insolvent company is to choose court liquidation. This choice should only be followed if you have difficulty with your financial situation or have failed to turn in your tax returns on time. You might be eligible to pay as you go, or you might be subject to limitations based on your firm’s conditions.
We Are Here to Help!
To explore your options, contact Australian Company Liquidations at 1800 731 155. We would be pleased to assist you with the liquidation of your firm.