Dissolve has helped hundreds of tradies to close up their companies when times get tough. We get it, you’re an expert in your trade, but you don’t always have time after a long day to do the books or chase up invoices.
At Dissolve we specialise in small company liquidations. Larger firms find small liquidations annoying and not worth their time. Not us. We’ve set up systems to process small liquidations more efficiently than the competition, keeping the price down for you.
And to answer a query that often arises, liquidation only applies to a Pty Ltd company. That is, if you’re a sole trader or in a partnership then liquidation is not an option for you.
Here’s a list of questions tradies often ask. If you don’t see your question here, give us a call for free advice.
If I put my company into liquidation…
What happens to my tools?
Often tradies own their own tools. Only rarely are they owned by their company. If they are in the company name, the liquidator will consider selling them. If they are old or of low value, the liquidator might decide it’s not worth the cost of putting them to sale.
What happens to my ute (or other vehicle)?
The first thing we will check is if the company owns it. If it is registered in the company name, or paid for by the company, the company probably owns it. That means the liquidator would consider putting it to sale.
The other factor is that vehicles are often under finance. If that is the case, we would work out what we could sell it for and if there would be anything left after paying out the finance. If the answer is that there would be no equity after paying the finance company, then we’d tell the finance company we don’t want it.
Can I start another business?
There’s nothing to stop you from having another business in your personal name, or even in a different company.
What you should not do is move anything of value out of the company going into liquidation without paying fair value for it.
What happens with unfinished jobs?
The company must stop trading the moment it enters liquidation, preferably some time beforehand. If that means some jobs are left unfinished, the client becomes a creditor in the liquidation. In some cases insurance will kick in and allocate the work to another tradie to finish.
What happens with retention payments / debtors?
On the day of liquidation, we will freeze the company’s account for outgoing transactions but leave it open to accept incoming transactions. So, any regular payments will still be received. For outstanding invoices, we will ask you for the details and send them a letter asking for them to pay into the company’s liquidation account.
What happens to my licence?
In some cases, a tradie will lose their licence if their company goes into liquidation. Check with your licencing authority on what the affect will be. It differs from trade to trade and state to state.