Steps to Liquidation

Liquidation is the process of closing a business and selling its assets to pay off debts. The steps generally include: 1. **Decision to Liquidate**: The business owners decide to cease operations. 2. **Notify Stakeholders**: Inform employees, creditors, and shareholders about the decision. 3. **Sell Assets**: Organize and sell the company’s assets, such as equipment and inventory. 4. **Settle Debts**: Use the proceeds from asset sales to pay outstanding debts to creditors. 5. **Distribute Remaining Funds**: If there’s any money left, distribute it among shareholders. 6. **Close Business**: Officially dissolve the business entity.