Q:

How often can a business hold a going out of business sale?

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Quick Answer

Laws on sales advertised as going out of business vary by state. Some states have guidelines that specify how much time after the sale a business can hold the sale again, while other states require that the business stays closed for a certain amount of time.

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How often can a business hold a going out of business sale?
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Full Answer

For example, in Ohio, any business owner who holds a going out of business sale is not allowed to reopen or open a similar business within 12 months of the sale. In Texas, the law only specifies that a business is limited to one such sale every two years. In most states, businesses are required to disclose to the authorities the sale's length and the merchandise that needs to be sold. Some states require paperwork proving the company's dissolution following the sale.

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