How to close the doors of a small AV company

D

Daniel Postilnik

Junior
Jan 14, 2011
304
1
18
37
San Francisco, CA
Hi guys,

Do any of you have experience shutting down your own AV company?

What happens tax-wise to the proceeds from liquidated equipment if it has all been depreciated via section 179?
Tips on how to notify longtime clients? Do I set clients up with trusted colleagues who deserve the business?
Tips on how to gracefully shut down a company website?

If the business entity only ever existed as a DBA, do I need to file any paperwork to "shut the file" as far as the state is concerned so they don't continue to bug me about sales taxes and whatnot?

If all of my income comes through w2 forms, can I stop paying estimated taxes?

Thanks everyone.
 
Re: How to close the doors of a small AV company

Hey Daniel,

I did this a few years ago. Basically the answers to your questions are:

1) Income from items that have fully depreciated is treated as taxable income.
2) I continued to do work for a number of clients after I stopped owning gear, and even after I took this day job. There were really only a few that mattered for me and I still do a bit for them every once in a while - nice to keep my feet wet and make some noise.
3) I pointed my company website at my personal website, which has some reference material and all my magazine articles.
4) Did you have your business registered as such with the state? You will also likely need to cancel your license to collect sales tax.
5) Yes.
 
Re: How to close the doors of a small AV company

Seems like the perfect time to hand them to someone you trust! I managed to hire a bunch of guys I trusted to A2 gigs with me as I was slowly moving into corporate-ness, and so that helped install them as my replacement.
 
Re: How to close the doors of a small AV company

Bennett Prescott said:
Seems like the perfect time to hand them to someone you trust! I managed to hire a bunch of guys I trusted to A2 gigs with me as I was slowly moving into corporate-ness, and so that helped install them as my replacement.
Click to expand...
In this case it would be more like shifting off the work to other similar small providers with whom I've partnered successfully in the past on various events. There are no "successors" to train, per se.
 
Re: How to close the doors of a small AV company

Daniel Postilnik said:
Hi guys,

Do any of you have experience shutting down your own AV company?

What happens tax-wise to the proceeds from liquidated equipment if it has all been depreciated via section 179?
Tips on how to notify longtime clients? Do I set clients up with trusted colleagues who deserve the business?
Tips on how to gracefully shut down a company website?

If the business entity only ever existed as a DBA, do I need to file any paperwork to "shut the file" as far as the state is concerned so they don't continue to bug me about sales taxes and whatnot?

If all of my income comes through w2 forms, can I stop paying estimated taxes?

Thanks everyone.
Click to expand...
When I shut down my company I sold off all the assets. I finally got to pay off my credit cards and I was VERY happy.

I had put some money to the side for taxes-but nowhere near enough. Yes I could have not declared it-but I am honest and then had to pay almost $30K in taxes-OUCH!!!!!!!!!!!

I had to go back in debt just to pay the taxes :(. But I got them paid off and have not gone back in debt. :)
 
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