How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Loren Your Own Question
Loren, Attorney
Category: Business Law
Satisfied Customers: 34487
Experience:  30 years experience representing clients .
Type Your Business Law Question Here...
Loren is online now
A new question is answered every 9 seconds

My small business is failing due to the economy. The business

Resolved Question:

My small business is failing due to the economy. The business is a dance studio which is incorporated, and the share holders are just myself, my wife and our parnter. Our main debts are to the landlord and utility company. The business owes about eight thousand in rent and bills, also next years outlook shows that more customers won't be back. We do plan to close. What would be the best legal way to close. Bankruptcy, let the Landlord evict us or is there some other alternative?
Submitted: 8 years ago.
Category: Business Law
Expert:  Loren replied 8 years ago.
Do you have any personal liability for any of the debts? Does the corp own any assets other than good will?
Customer: replied 8 years ago.
I did personally loan the business five thousand for a bill on my credit card, but all our bills are in the business' name, not our personal names. Assets are few, Computer, mirrors, vending machine, other than the good will.
Expert:  Loren replied 8 years ago.
First, I am truly sorry to hear of the problems you are having. This economy is hurting all of us. Just remember that the pendulum swings both ways.

Let the landlord know you are going under. He may agree to work something out with you to terminate the lease. It is probably not worth going through bankruptcy for just the lease and utilities. Talk to the utility company and let them know you are going out of business.   It doesn't appear that you have any personal liability so you should be able to just lock up and walk away. Just be sure you did not guaranty anything and make sure your corporate minutes and other corp formalities have been maintained-just to be on the safe side.

I hope this helps and that things turn around soon for you.
Loren and other Business Law Specialists are ready to help you