Closing a sole trader

A sole trading business is probably the least complicated to close.

As a sole trader you are personally responsible for all the debts and liabilities accrued by the business. To voluntarily wind up your business you will need to:

  • conclude any ongoing contracts;
  • sell stock and remaining assets;
  • collect outstanding debts;
  • pay creditors;
  • notify all interested parties (for example: banks, landlord, customers, suppliers, local council and registering bodies);
  • cancel or transfer your registered business name through ASIC's online smartform and
  • distribute the remaining money to yourself.

What's next...

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