Legal Question in Business Law in Minnesota
Incorporated business(s) need to bankrupt one
I have 2 customer service(food retail) businesses. It is not a franchise. One of these is doing very good (financially) but the one I had purchased is doing so poorly that I need to close it. But since they are incorporated I have been told I have to close both. I will also try to sell them. Is there anyway to get out of only the one? But keep the finacially stable one?
Thank you in advance.
1 Answer from Attorneys
Re: Incorporated business(s) need to bankrupt one
I do not do anything with bankruptcy law however I had a thought that might help you with your decision. You may want to talk to a CPA as there may be different tax advantages to bankruptcy (which may or may not be an option for you) and simply selling the non profitable restaurant and taking a loss (which could offset profits) from your corporation.
I do believe the attny who gave the original advice (have to file bankruptcy for the entire business) is probably correct.
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