The Restaurant Exit Timeline: From Decision to Dissolution

A step-by-step visual timeline of the restaurant closing process -- from the moment you decide to close to final entity dissolution. Realistic timeframes, the right sequence, and what happens if you skip steps.

Why Sequence Matters

Most restaurant owners who close do it in the wrong order. They announce the closing before they have talked to their landlord. They liquidate equipment before they have settled with vendors. They dissolve the entity before they have filed final tax returns. Each of these mistakes costs money and creates legal exposure that a clean exit avoids.

The Right Sequence

  1. Decision and assessment (Week 1-2): Confirm the decision, understand your obligations, gather your documents.
  2. Landlord conversation (Week 2-4): Before you announce anything publicly, have the landlord conversation. This determines your lease exit strategy.
  3. Vendor and supplier notification (Week 3-5): Settle outstanding accounts and negotiate final terms.
  4. Employee notification (Week 4-6): WARN Act compliance if applicable. Final payroll planning.
  5. Liquor license and permits (Week 4-8): Transfer or surrender. State-specific timelines vary significantly.
  6. Equipment liquidation (Week 5-10): After lease exit is settled, not before.
  7. Final tax filings and entity dissolution (Month 3-6): Final sales tax return, final payroll tax, entity dissolution with the state.