When your Michigan business reaches the end of its life, Investopedia describes liquidation as the distributing assets to claimants. The company uses its assets to pay off shareholders and creditors based on the priority of each party’s claim. Businesses in the middle of a foreclosure need to think about what to do about the rest of the mounting debt. The idea behind liquidation is to recover as the most that you possibly can.
Before you dispose of your assets, you will need to create an inventory. Document all of your assets in their entirety. The types of assets should be as follows:
Every asset should have a serial number written down if it has one. This will provide you with a roadmap to keep track of your assets throughout the process. This will also satisfy the tax authorities and your creditors that may want you to confirm your assets. While not all of your assets will be worth selling, it is important that you list out which have value and which do not. You can donate the low-value items for a tax break.
All Business suggests that you utilize online resources and visit auctions to decide the value of your assets. Look for similar assets and figure out what you could sell yours for when you are done. If you need the extra help, you can hire an appraiser. An appraiser can tell you what your assets are worth in a sale. At the end, you can choose which type of sale would suit your assets the best.