To close a sole proprietorship, the owner must
A) notify the secretary of state.
B) pay creditors.
C) publish an out-of-business statement in the newspaper.
D) have all licenses and permits revoked.
E) None of the above are correct.

Question

Quizplus · Accepted Answer

When a sole proprietorship is closing, the owner is responsible for paying off any debts or outstanding bills to creditors. If the business has any assets, the owner should sell them and distribute the proceeds to creditors. There is no need to notify the secretary of state or publish a statement in the newspaper. However, the owner should cancel any licenses and permits associated with the business.

To Close a Sole Proprietorship, the Owner Must