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How Vintage Furniture Is The New Design Trend

In 2020, people spent more time at home than they had spent in any other period in recent history. Spending so much time at home made people more aware of their household furnishings and more eager to transform them so that they fit their vision of where they wanted to live and work. With remote and hybrid models of work likely to be an important part of our lives for the foreseeable future, people will continue to invest in their households at higher levels than in past years. One area where people have invested heavily is in furniture. According to a new report, in 2020, spending on furniture and appliances rose from $373 billion to $405 billion year-over-year. The shift to working from home and shopping online drove growth in ecommerce,  and one of the fastest growing segments in ecommerce was the vintage and consignment market. Vintage furniture became and has remained the most important design trend of our times. 

Chairish, the vintage furniture ecommerce platform, enjoyed a 60% growth in sales. 1stDibs, an ecommerce company that sells luxury items such as furniture, earned a 23% increase in its revenue. Kaiyo, a platform for buying and selling used furniture, has experienced triple-digit growth, month-over-month.

An obvious answer is that second-hand furniture is affordable, and in a time of economic distress, people would shift their purchases towards cheaper alternatives to goods that they need. However, collectible and heritage items performed strongly during that period too. For instance, 1stDIbs sold out its stock of Ray and Chalres Eames’ Lounge Chair, the Ultrafragola mirror and Mario Bellini’s Camaleonda Sofa. Users of the Chairish platform have turned a profit on items such as Michel Ducaroy’s Toga sofa. According to its annual report, Kaiyo sold the DDC On the Rocks sofa at a staggering $18,346 price. This really shows the strength of the collectibles and heritage segment. 

Experts predict that the vintage and second hand furniture market will be even stronger in the coming years. According to Statista, the furniture resale market will grow 3.5 times faster than traditional retail, by 2025, appreciating by 54% between 2021 and 2025. 

An important reason for the growth in the sector is the change in attitudes toward secondhand goods. This change in attitude has come at a time when platforms such as Depop, TheRealReal, and ands, have allowed millenials and Gen Z shoppers to buy used clothes. The change in attitudes extended to furniture. According to Chairish, 31% of millenials and Gen Z shoppers had a greater demand for second hand, vintage or antique furniture over the last year. 
ANother factor is that mass-produced goods have started to lose their sheen. People feel increasingly disconnected from modern consumerist society and vintage furniture arouses more nostalgic emotions, and feels less embedded in consumerism. Modern designs often seem to go out of style as quickly as they get into style, whereas vintage furniture has a more enduring appeal. Younger consumers are looking for goods that express their individuality, rather than embed them in mass-consumerism, and this makes vintage furniture, and classic designs such as leather recliners Made in USA, so appealing.

How To Compete In The Leather Upholstery Market

Demand for leather furniture has been steadily growing for many years. Expects estimate that the market will grow at a rate of 3.9% compounded over the 2020 to 2027 period. More optimistic reports suggest that the industry will grow at a rate of 5.9% compounded over the 2021 to 2028 period, achieving a value of some $626 billion by 2028. Millenials and the emerging cohort of Gen Z buyers, have developed an affinity for leather furniture, and the quality of the product has many things in its favour. Leather is one of the most durable materials out there, and that, coupled with its texture and looks, means that when it comes to conserving value, there is no better product out there on the market. A key driver of growth is that over the forecast period, consumers are expected to enjoy rising disposable income, allowing them to take advantage of the benefits of owning leather furniture. With growth predicted to continue for the next few years, it is no surprise that many entrepreneurs have entered the market to compete for their slice of the market. Increased competition in the market is not the only problem that manufacturers face. We are living in an age of supply chain disruptions, labor shortages, and a consumer that is more price conscious than ever. Competing in this industry is one of the big questions facing upholsters and a question that I will try to answer in this article. 

Manufacturers will have to embrace a new way of doing business. A decade ago, venture capitalist Marc Andressedn declared that, “software is eating the world”, and since then, his declaration has proved prophetic, with industry after industry increasingly mediated by software. The leather furniture industry is not outside of this movement. Manufacturers have to realise that they have to embrace the use of digital technology to generate efficiencies, improve the customer experience, unearth insights to improve their product quality, and ultimately, to earn higher economic profits. With 30% of consumers who purchase leather furniture being between 25 and 34 years of age, there is certainly a massive opportunity to capture consumers who will be on the market for decades to come.

Process optimization and automation are two of the most powerful ways that manufacturers can use to improve their profitability. For instance, the Lectra Versalis 4.0-ready digital cutting solutions enables manufacturers to improve their competitiveness through four improvements:

  • Increased product quality
  • Higher yield, reducing costs and optimising pricing
  • Greater productivity at a time of labor shortages and where time-to-market has to be slashed
  • More efficient processes thanks to data leveraging

Manufacturers need to leverage such solutions, as well as work with innovators who can provide them with adequate support and guidance to deliver the efficiencies that technology promises. The result of an approach that is open to innovation can be seen in products such as the Bradington Young recliner, which is made in the most efficient way possible, while delivering value to the customer.

Why Dentistry Lacks In Quality Management

Most people do not realise this, but your oral health is a window to your overall health.According to the Institute of Medicine of the national Academies, which in 2011 published the definitive report on the subject, a close oral exam can detect signs of health problems such as systemic diseases, nutritional deficiencies, microbial infections, injuries, immune disorders and even some cancers. Periodontal disease is associated with respiratory disease, pregnancy outcomes, cardiovascular disease, diabetes, and coronary heart disease. The link between the two is why a person’s oral health care will be increasingly integrated into their overall health care. As this happens, dentistry will have to embrace standardized quality and outcome measures, areas which the industry has been relatively lacking compared to the rest of the economy. The reasons wny dentistry has been lacking are varied and the subject of this article.

Dentists Don’t Capture a Lot of Information

At present, dentists generally operate according to a fee-for-service structure in which relatively little data is collected about patient outcomes. This means that the typical dentist does not have enough data to be able to make the necessary insightful inferences to improve quality outcomes. Microsoft founder, Bill Gates, has spoken about the importance of measurement to enhanced performance. Measuring stuff allows us to see if the changes we make actually work. Measurement provides the necessary feedback to enable fertile innovation. Without measurement, innovation is doomed to be erratic and rare. It’s for this reason that the fee-for-service model proves to be an impediment. Dentists simply are not measuring enough stuff and so, quality outcomes are reduced and standards of care are not as high as they could be. In order for the coming integration with overall healthcare to work, dentists will have to adopt more evidence-based methods, methods teeming in the kind of measurements that dentists don’t as-yet typically collect.

Dentists do not have broadly accepted definitions and ways of quantifying quality. The first reason for this is that diagnostic codes are not widely used. So, we do not have a sense of the rationale behind why dentists make the decision they make and arrive at the diagnosis they do. So, it is impossible to know, measure and understand if treatments are truly effective.

Secondly, dentists are trained on the technical aspects of their job. Yet, there is a difference between being good at the mechanical side of the job and making the right decisions for the long-term care of the patient. Yet, dentists do not evaluate long-term effects of their care on their patients.

Reimbursement is another issue. Incentives are a powerful force in shaping human behaviour. Quality metrics were institutionalised by the federal government as part of the establishment of Medicare and Medicaid in 1965. Dentistry did not go through a similar process and so reimbursement is not tied to quality metrics. Your dentist is usually well trained and very good at their job. But typically dental practices are small affairs, they have not undergone the scaling and consolidation that other industries have. As dental practices consolidate, they are increasingly embracing quality metrics to drive better patient outcomes.

Why Self Storage Makes Great Real Estate

If you’re looking for a great investment opportunity, you can’t do better than self storage. It is one of the fastest growing real estate investment classes in the world. Over the 2020-2025 period, the self-storage market is expected to grow by a compound annual growth rate of 134.79%, from $87.65 billion to $115.62 billion. The industry is recession-proof, because people always need places to store their goods. The massive opportunity in self-storage has attracted investors such as Bill Gates, who invested in StorageMart, America’s eight largest self-storage company. 

The recession-proof nature of the self-storage market is one of its most attractive features. The most important rule of investing is, “Don’t lose any money” and the second is, “Don’t forget the first rule”. You have to survive in the market before you can even think about making a profit. To tilt the odds in your favour, you need to be in an industry that is recession-proof. As we analyse the economic impact of the pandemic and the initial lockdowns, we can see that the self-storage market managed to stay afloat. According to a report by Trepp, delinquency rates on 1,700 loans for self-storage facilities were less impacted than those of loans in other real estate sectors. 

What makes the self-storage business so robust are the changes in where people live. Urbanization has intensified and with millenials moving into their own places, there is a massive demand for self-storage facilities. And people are accumulating belongings at a faster rate than ever, so that they self-storage facilities to store their things, because their rental spaces are just too small. 

Businesses have also gotten in on the act. Many businesses have had to downscale or relocate and often that means they need a place to store their things while they plan the next move or make a transition. That means self-storage facilities have an additional revenue segment they can rely on.

The rise of remote work has led to very decentralized organizational structures. Often, offices have been reduced to very small staff compliments, with the majority of the organization working remotely or working under a hybrid work model. This decentralized work model drastically reduces overhead costs and so businesses have moved to smaller offices and chosen to store their excess belongings in self-storage facilities. The difference between their initial overhead costs and the costs of managing from small office spaces and with their excess belongings in self-storage units, has led to huge savings.

Lifestyle changes are another source of demand for self-storage facilities. When people get divorced, for instance, one party typically has to move out of the house and often, move into much smaller accommodation. Where does their stuff go? A self-storage facility. Between March and June this year, the divorce rate went up 34% compared to 2019. The pandemic’s impact on livelihoods, marriage, and other aspects of human life, have forced many Americans to make major lifestyle changes that often necessitate the use of self-storage facilities.

Remote work is another source of demand. When your job and where you live no longer need to be in the same space, people often choose to leave big cities for smaller ones or even rural life. Where do their things go? Into the best portable storage pod they can find. 

A Massive Shortage of Home Care Workers Threatens the industry

As more and more older adults report a desire to spend their twilight years at home, there has been a boom in home-based care. The trouble is, the home care industry has been plagued by staffing shortages for many years. This makes it difficult for the families of older adults and the older adults themselves, to give older adults what they sorely desire. Often, family members have to become makeshift caregivers, forced to get time off from work, or sometimes even work part-time, use adult day care facilities, or retire early, just so they can give older adults the home care that they need. Getting home care is even harder today, because the risks of having hired help or volunteers in the house often outweigh the benefits. This puts additional pressure on family members to take care of older adults. It’s this crisis that is the subject of a fascinating piece in the New York Times

As the New York Times shows, it can be hard to find help, either through word-of-mouth, local agencies or other means. Often, local agencies will charge fees only to tell you that they don’t have any home caregivers for you. Eventually, some families are forced to place their older adults in facilities, often at incredibly steep rates. The economic consequences of the staffing shortages in home care are massive. 

The homecare industry is made up of a hodgepodge of nonprofit programs, publicly funded care, and for-profit businesses and chains, all of whom operate under federal and state regulations. There is also a gray market that caters to clients who want to avoid regulation and so hire privately.

Vicki Hoaqk, the Home Care Association of America’s executive director, says this is the most frustrating period in her 20-year career in the industry. It has never been so hard to find workers. The association is made up of 4,000 agencies and 500,000 people and yet, even then there is a struggle to help people get the workers they need.

According to the Bureau of Labor Statistics, the direct day care workforce shrunk by 342,000 workers in the last year. This includes nursing homes, as well as other home care and residential care staff. This reverses a long-held pattern in which employment rose in each category every year. The reason for the contraction in the labor force is that many workers were laid off, or workers resigned because of Covid-19 related fears or health problems, child care issues, and other issues.

Thankfully, employment in the home care industry rebounded toward the end of last year and is now just 3% off from its pre-pandemic levels. However, this rebound occurs at a time when there has been an explosion in demand for home care workers. Other healthcare categories, such as nursing home occupancy and assisted living, are in decline, whereas home care is on the rise. At present, there are over 800,000 older adults and disabled people, all eligible for Medicaid, and all on state waiting lists to receive home care. Those clients who are paying with private schemes or their own funds are being turned away by agencies. With the nightmare of Covid-19 receding, many people have taken the lesson that congregate care settings are less healthy and safe than home care. Resolving this crisis is one of the great challenges the country faces moving forward.

Beauty Tech Is Revolutionising the Cosmetics Industry

When people think of technology, they seldom associate it with cosmetics. Though the cosmetics industry can represent the art of the future and the possibilities of tomorrow, its use of science, technology, and research and development is often hidden from the public view. As technology has evolved, so too has cosmetics. The cosmetics industry has embraced the new wave of technology that is sweeping the world. “Beauty tech” is becoming an increasingly important part of how the cosmetics industry conducts research and development, delivers products to its customers, and tries to enrich the customer experience. As Know Techie reports, new technologies are set to revolutionize cosmetics. 

One of the most important developments in recent years has been the adoption of artificial intelligence (AI) and augmented reality (AR). These technologies assumed an even greater importance during the pandemic. As shoppers were forced to stay at home, cosmetics businesses had to adapt to deliver their products to their customers and find ways to recreate the magic of the in-store experience at a time when shoppers could not go to stores. AI and AR came to the rescue. AI uses data to find patterns and draw insights from those patterns and thereafter, perform some task. So, for instance, when you browse through a cosmetics firm’s website, it can recommend products based on your search and browsing history, purchases you have made and other data. AR, on the other hand, overlays actual reality with digital information. So, for instance, while shopping for lipstick, an AR program can take an image of you and apply lipstick on that image so you can see what you would look like if you wore that lipstick. Sephora’s 3-D augmented reality mirror allows customers to try Sephora’s makeup products in such a way, avoiding the need for actual physical contact with the product. A clear advantage of AR is that not only can brands deliver the in-store experience of trying products out, AR is much more sanitary at a time when the pandemic has made us so aware of the dangers of physical contact. AR is also much more cost-effective than maintaining an actual store. Customers can try products from anywhere on the planet using the brand’s app, and order what they like, without ever having to go to a physical store. 

When you talk about skincare, most people think of moisturisers, cleansers and things like that. Brands will often promote these products as important elements of skincare, which they are. However, these products are not the be-all and end-all of skincare. Technologies and apps are becoming a very important part of skincare routines. These technologies can be used to analyse your skin and monitor UV exposure. SkinScanner is an example of a product that you connect to your smartphone. SkinScanner scans your skin and helps you find irregularities there. FaceGenius and Clinical reality are other examples of skin scanners that are now widely used. These technologies won’t do your eyebrow microblading for you, but they do allow you to intelligently scan your skin and ensure that it is at its healthiest.

How To Streamline Your App Development Workflow

As the shift to digital accelerates, the demand for new apps has surged. App developers face various challenges in meeting the market’s demands. There are funding constraints, a need to establish quality control systems, and other issues. The most immediate concern for app developers though, is how to work in an efficient and effective way. In this article, we will discuss how you can streamline your app development workflow in order to reduce development costs and speed up turn around times in your quest to build the next great app

  1. Start By Building a Code Library

Writing the actual code that will run your app is a vital part of your process, but it is a part of your process that takes up a big chunk of your time. For many app developers, they will be working from scratch, with very limited resources. Finding ways to write code efficiently is, then, very important. 

So what you need to do is to catalog any existing code in a library. This will improve your productivity by reducing the amount of time that developers will need to write and test new code. All that will need to be done is to retrieve code from the library and use it where needed in future app development projects. Consequently, your turnaround times will dramatically improve.

  1. Reduce your Data Storage Infrastructure

This sounds counterintuitive, because you often assume that the bigger your infrastructure, the better off you are. Yet having multiple databases only serves to increase the number of steps that your team has to go through to achieve their goals. 

Duplication is a likely result of having multiple databases. Often, teams find that they have databases that they do not need or even use, all the while increasing your security risks. Using a single database to store resources is much wiser from a workflow as well as a security aspect. Students in the best STEAM and STEM programs will be familiar with the importance of optimization. Having more than one database is not the best way to achieve optimization. 

  1. Use Layouts of Pre-Existing Apps

Using templates seems to be an admission of some kind of defeat for many developers. Yet, as the great scientist Isaac Newton noted, in order to see far, you should stand on the shoulders of giants. Take advantage of app templates in order to make a better product and work even faster. Using what came before you and worked well will help with your workflow in ways that are often underestimated.

Layouts will come with source code, which means that you will be able to skip a developmental stage by simply using that source code instead of writing it from scratch. There’s no need to consider things like UI/UX design, because someone else has already worked through those problems for you and come up with a solution you clearly like.

  1. Test! Test! Test!

Many apps fail because they are not rigorously tested. Developers kind of assume that their apps work well or that a few tests are enough to get an idea of the capabilities of the app. If you can test your app under the most extreme conditions, even if it seems unlikely that they will occur, you will be able to build a robust app that consumers will like. 
Running continuous tests is a great way to ensure that problems are dealt with as they arise and you receive almost immediate feedback at each stage of development.

How To Deal With A Foreign Workforce Post-Pandemic

The COVID-19 pandemic has hit the world, and more than a year from its start date, we’re still trying to cope with the fallout. Workforces have evolved significantly since the start of the outbreak. With businesses forced to close thanks to rolling lockdown situations, they had to get creative about hiring and maintaining their workers. CNBC notes that many people started seeing working from home part-time as the norm during the pandemic. Even so many businesses opted to furlough employees. These workers would be kept in reserve for when lockdowns eased, and businesses were once again allowed to open. Other companies opted for hiring remote freelancers to replace those they lost because of the pandemic. In a post-pandemic world, however, how does a business deal with an ever-increasing international workforce?

An International Worker Crisis

While many people would be acutely aware of North America’s situation, we tend to lose focus on the fact that the pandemic was a worldwide event. From Indonesia to Argentina, the world has seen workers lose their jobs because of dwindling business income and finding reskilling necessary. McKinsey even suggests that businesses should look into reskilling their existing workforce if they are to survive the pandemic. In places that are already low on population, such as Japan and Canada, the need for new migrants to build out the workforce becomes even more critical. With several less economically developed countries facing the pinch of a contracting economy, there’s likely to be a wave of incoming immigration to more economically developed countries.

The Freelancer Equation

Due notes that many big businesses much prefer to hire freelancers because it helps them to manage their costs more effectively. Over the last year, we’ve seen several more people enter the so-called ‘gig economy” to make ends meet. Even so, established freelancers exist in several countries. In 2018, Payoneer, an international payment processor popular with freelancers, surveyed 21,000 workers from over 170 countries globally. Inc. mentions that from this survey, they discovered that 80% of freelancers have between one to three projects going on at the same time.

Freelancers fill a void, and businesses will rely on them more often as they start paring down their in-person workforce. Hiring internationally can still be a headache, especially when local tax regulations may not conform with the employer’s home country. Freelancers work around this issue by allowing them to operate as independent contractors. The business doesn’t keep them as an employee. Instead, they are a separate entity responsible for their own tax filing and details to their local authorities. This simplification makes it much easier (and less stressful) to manage a freelance workforce than one that’s made up of salaried workers. Overseas, the operation cost may be much lower, as may the amount needed to fund staff. However, running afoul of local legislation may be more trouble than it’s worth. If a company intends to go the freelancer route, they may pay more per job but wouldn’t need to keep an eye on the changing local labor legislation. For many, this is an acceptable trade-off.

International Expansion and Acquiring Workers

For businesses intending to expand internationally, locating a local workforce is a challenge. Compliance is always a concern when it comes to international hires. Companies used to how North America does things may have a rude awakening if they move to countries like those in South America where strict labor law is imposed upon businesses intending to operate there, especially if they’re looking to operate in the world of Legacy Countertops and laser treatments. There are solutions that companies may choose to employ, one of which is the freelancer hiring methodology mentioned above. Alternatively, a business could opt for  the Employer of Record solution instead.

What is an Employer of Record?

An Employer of Record is a solution that enables international companies to access a local workforce through a proxy. The proxy could be an employment agency or a contact on the ground responsible for recruitment and interviewing. Once the candidate has made it through the interview process and is hired, the Employer of Record takes over the relationship as the primary contact. Once they do this, the Employer of Record is responsible for HR, employment benefits, etc., and the end-client company only needs to deal with day-to-day operations. Employer of Record solutions are useful for several reasons:

§  More Rapid Expansion into New Markets: If a business wants to enter a new market rapidly, using the Employer of Record method allows them to get their business up and running faster. There’s no need to go through the lengthy process of registering a local imprint of the company and the bureaucracy associated with that process. The EOR allows for compliance in that particular local market and doesn’t take excess time to set up.

§  Expansion Costs are Reduced: Businesses entering new international markets usually have to deal with paying fees for registration, rentals, offices, etc. The money allocated to a global expansion may be significant, but if the business doesn’t need to throw that money into these areas, it could be used to do more. EOR solutions enable an enterprise to reduce the cost of entry into a new market since they just need to establish contact with the client company on the ground and build a relationship. The client company handles all the local expenses while the parent company keeps their funding for more viable purposes.

§  Compliance With Local Laws: As mentioned before, compliance is one of the hardest things to guarantee when a business expands into an international market. Local legislation is fluid, and where a market suffers from protectionist measures, they may be draconian. It would be easier for a local company to set up than an international business to get a foothold. EOR solutions ensure that the parent company can still operate within the country without dealing with the red tape associated with the company’s legal status. All employees would similarly be compliant since they would function under the client-end business registered within the country.

§  Allows For Non-Core Functionality Outsourcing: Typically, a business has certain core functionalities. When it expands into international markets, outsourcing non-core functionalities helps them keep the essential parts of the business in-house, where they can focus on perfecting those processes. Outsourcing also enables the business to operate with less risk in some jurisdictions. There’s no need for the company to ensure compliance with local payroll requirements or submit to labor laws within the country. They can focus their home office on core functionalities and outsource to the end-client business in the international locale.

A Changing Employment World

To say that the world has shifted its focus from traditional employment would be an understatement. Between freelancing and international EOR companies, there is a significant amount of work being done overseas for local businesses. For some people, this is seen as a negative. It results in an outflow of funds from the country, potentially impacting the local economy. However, as the world becomes more globalized, this is less of a concern. If international workers have the skills, then businesses shouldn’t hesitate to take them up on their offers. Establishing these relationships with international workers may become even more of a vital function as time goes on.

How Does Local SEO Work?

The internet has widely been seen as a way for businesses to reach a global audience. What is often ignored is that it is also a way for businesses to more effectively reach potential consumers within their vicinity. Local search engine optimization (SEO) is a powerful tool that is neglected as businesses chase far-flung consumers. Yet, mobile searches qualified by the phrase, “near me” have grown by 900%. Consumers are hungry for information about goods and services near them. That’s an opportunity that you cannot afford to miss. 

Explaining Local SEO 

Local SEO refers to the optimization of a website for local search results. The web content, the link building and the on-page optimization are enriched with locally relevant content. This is particularly powerful if your business is naturally focused on serving your immediate community.

SEO itself refers to optimization of your website so that your page ranks improves. Local SEO is more granular. Rather than optimizing your content against the universe of service providers in your industry, you optimize based on your location. 

How Local SEO Works  

Optimizing your website with locally relevant content, links and on-page optimizations sends Google a signal that you want to attract people who are interested in receiving a service within a certain locale. Aside from this, local SEO is similar to “normal” SEO. So, when a person searches for goods and services with a qualifier “near me”, Google scans its page index for the best results and spits out pages based on its page ranking. The better optimize your content, the higher up the search results you will feature. 

Google uses various criteria to help it give the user the right results. It looks at NAP citations; the number of times users have “checked in” to a locale; the Google Maps ratings of businesses; the Google My Business keywords; online reviews and keywords; the amount of content shared on social media; and if your business has a Google My Business listing. 

  • Presence of your Google My Business listing

Google and other search engines also view the technical part of your website pages. They look through your LocalBusiness Schema Markup. This element makes it clear to Google that you’re a local business aiming for the areas you serve.

Why Local SEO Is Important

The best search engine optimization services will help you do well and rank highly on search results based on the above metrics. This means you will be able to capture more clients interested in goods and services in a particular location. Often, when people want to get goods and services in a particular location, they also want to get other goods and services there. In other words, they will have many reasons to be in that location. So you just may have a repeat customer on your hands. And, that person is likely to know other people in that area, meaning leads for you. 

You should pay more attention to customers who want to buy in your vicinity. These are low hanging fruits that you cannot afford to ignore. ALl kinds of businesses can increase sales by tapping into local SEO. A whopping 88% of consumers who use location qualifiers in their searches make related searches within a week.

How To End Your Business Legally

When your business has come to the end of its active life, you need to close off its operations legally. The Houston Chronicle tells us that the term for this process is known as “Dissolving”. Dissolving a company is a simple process for a sole proprietorship. However, as a business’s structure gets more complicated, it takes some more effort to ensure that a business stops existing as a legal entity. When dissolving your company, there are the legal steps you need to take:

  1. LLC/Corporation Action

The board of directors would draft and then approve the resolution to dissolve the corporation. When the resolution is tabled, the shareholders will vote on it. The results of the voting should be entered into the corporate record book. WHile not strictly necessary, documenting the overall decision and the attitude of members to the dissolution is recommended.

  1. Filing the Paperwork

Once the resolution for dissolution has passed, the company must file the documents to dissolve the company in the state where the business was initially incorporated. If the company operates across state borders, then each jurisdiction that the company is present in must also be advised of its dissolution. The requirements for the articles of dissolution vary from state to state. In some cases, a state legislature will require the business to settle claims and notify creditors before it files for dissolution. 

In other cases, these steps can come after the dissolution filing has already been submitted. Some states need the company to have tax clearance before they can file for dissolution. If the company owes taxes to the state, these must first be dealt with before it can file for dissolution.

It is of course preferable to sell the business instead of dissolving it, as this benefits all of the owners by providing some profit according to business broker and advisers at ExitAdviser. Having the proper documents needed for selling a business are just as crucial as if you were to dissolve it.

  1. Formalizing Business Closure at the Federal level

Even though the business is no longer in operation, its tax obligations don’t immediately stop. You need to formalize the closing with the IRS and with taxation officials at the state level. The IRS itself has provided a checklist for closing a business that allows you to check off each action as you complete it. Payroll reporting obligations will apply if you have workers that are registered under the company.

Most IRS forms will come with a checkbox that you can utilize if this is your last year in operation. You’re also required to make a note of the property you dispose of (and who it went to) as well as any like-kind exchanges that you’re undertaking on behalf of the business. 

Another point to remember is that your EIN remains valid, even though the business is shut down. The IRS does not recycle EIN numbers, and once you get one, that number remains associated with your business, even if that business is no longer in operation. Even if you stop using the EIN for tax filings, and no revenue is received from the business that the EIN is registered to, the IRS will never reassign the EIN to another company. Each newly filed company gets an EIN of their very own, and the number is a permanent record of their tax payments. If the business reincorporates at a later date, the EIN may be reused for tax payments.

  1. Notify Creditors of Closure

In all states, you are required to inform your creditors by mail about the business’s closure. The letter you send should state that the company intends to dissolve, a mailing address to send their claims to, all information included in a request, and the deadline for submitting the claim. Furthermore, the letter should state that claims not received by the deadline (usually 120 days after closure) will not be entertained. Some states require businesses that are closing to declare their intention to close in the local paper.

There are situations where your state may allow claims from creditors that your business isn’t aware of at the time of closure. In these cases, you may be required to place an advertisement in the local paper to let everyone know about the closure of the business. If you’re unsure about if your state allows for this situation, consult a local lawyer for insight into whether you need to advertise the closure.

  1. Settling Claims from Creditors

When the business has ceased operations, creditors may make claims on the business’s assets. Based on the level of debt that the company has to the creditor, he or she may be entitled to some of the business’s holdings’ best corporate meeting spaces. If you have to reject creditor claims, you must write to the creditor and outline why you had to reject their requests.

You don’t need to accept all of a creditor’s claims either. If a creditor has a claim, he or she may decide to settle for less of the claim, or a transfer of assets in lieu of any monetary payments owed to him or her. In most cases, a business can discuss the situation with the creditor and work out a settlement. In many cases, the settlement is likely to be in favor of the business.

  1. Distribution of Assets

When all of the creditors’ claims are settled, the business can distribute assets to company owners based on the share of their ownership. If a particular owner holds 80% of the company’s stock, for example, he or she is entitled to 80% of the assets left over after the dissolution of the company and payments to creditors have been settled.

All of a business’s asset distribution must be reported to the IRS as we noted above. If your business has multiple classes of stock, then the company bylaws will usually help determine how the remaining assets are to be distributed to the shareholders. 

Closing Up Shop

Sometimes, you need to shut down your business for any number of reasons. It happens to some owners from time to time. Protecting your personal assets from creditors is a crucial part of being a smart business owner. Don’t be discouraged. With time, you may chance upon a new idea that will be even better than the unsustainable one.

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