Consequently, each business owner needs to understand the various costs that might be involved in company liquidation. It may not always be easy to go through but when you have a seem-like picture of the expenses at hand you’d be much in a better position to handle it. In this blog post, you will find information about the various expenses that you will incur in the company’s liquidation process, recommendations on how one might avoid overpaying, and what Australian Company has to offer in terms of fee transparency.
Initial Consultation Fees
The process of liquidation of the company may start with a meeting of the company and a registered liquidator. In this meeting, the liquidator will look into your company’s financial books and determine what should be done. In addition to this, most liquidation firms usually provide this first appointment free for business owners to consider their choices upfront costs. Australian Company Liquidations, for example, provides a free 24-hour phone consultation, which can be a great starting point for business owners in distress.
Liquidator’s fees
The other costs come into play only when you decide to proceed with company liquidation and the fees charged by the liquidator form the bulk of the costs. As a general rule, such costs tend to exclude the steps of assessment and disposal of the current and fixed assets, collection of information from the creditors among others, and the of the proceeds. Liquidators usually request a lump sum payment or a percentage of the value of the assets that are going to be liquidated. The cost is going to differ depending upon the type of business and the amount of effort going to be needed. As a result, one should also make sure the liquidator charges reasonable prices, and one should ask for a detailed description of the costs one should expect. Australian Liquidations offers reasonable and competitive prices for its services, and there are no hidden costs after the selection of the service.
Other Costs that Arise when Liquidating
Aside from the liquidator’s fees, there may be other charges that go with the process of company liquidation. Some examples of such costs are legal costs, costs of hiring auditors, and other professionals needed when shutting down a business among others. The above-said costs should be brought to the attention of the liquidator from the onset so that necessary preparations can be made regarding the source of finance. In some circumstances, directors are also expected to contribute the company’s funds towards these specific expenses, where for example, the company asset base is inadequate to meet all obligations.
Measures to Control and Minimise Cost of Liquidation
One of the best ways to manage the costs of company liquidation is always to select an appropriate liquidator. Choose a firm such as Australian Company, which provides reasonable prices as well as transparent tariffs. Early action can also benefit you and save some of your money. The longer it takes to address the issues concerning finance the more complicated things get and thus increases the fees for liquidation. Also, it is wise to ensure that all the records, papers, and accounts of a company are well arranged before going for a liquidation process to be conducted, they will avoid having to do them again thus cutting on the expenses. A good Company prepares will facilitate the working of a liquidator hence making the process cheaper in the long run.