Do you have to file something with the government when you end a business?

Question

My dad owns a restaurant. He passed away two days ago. Do I need to file something with the government saying that the business has ended?

Answer 1

Sorry for your loss.

If it's a corporation, then yes.

If it isn't incorporated but is a sole proprietorship, then whoever is managing the estate will have to file a final return for 2007 for your dad.

Answer 2

The business is an asset in your fathers estate and whether it is incorporated or not it becomes an independent entity. To the extent that your fathers estate has the ability it must pay it's bills and meet it's obligations. If the business is organized as a limited liability organization it only needs to pay it's own bills and close. If it is a sole proprietorship then it can draw on other assets from the entire estate in it's liquidation. Paying it's bills, taxes and wages are it's only obligation and mainly that is to save your father's inheritors from being sued for debts he incurred and the estate could have paid.
Let's say You inherited and there was nothing left after you paid the funeral expenses but you closed a viable business in which $300,000 was owed for a recent remodel. You could be inviting a law suit. Under these circumstances or any thing like them you would be best advised to obtain local legal counsel.

Answer 3

Sorry about the tragedy...my condolences to you and your family.

I am not sure if you have to file anything to the government but off the top of my head, yes you do...

Why don't you continue the business? Make your family proud and realize that it's exactly what your dad would have wanted you to do. Make the business a big success, you can do it. Don't give up man. Good Luck...