“Winding up” a business is generally defined as a shift in the business’s purpose from “making money” to “paying off creditors and distributing assets.” Put another way, winding up a business refers to the transitional phase between when the business decides to close its doors and when it formally finishes distributing all of its assets to creditors and other interested parties. The term is synonymous with “liquidating” a business, which means that all of the business’s assets are converted to cash as a way of paying off any and all liabilities and paying out any remaining equity the owners might have in the business.