|
X
|
20 Action Steps to Closing the Business
|
|
|
Vote to close the business based on state business statutes, i.e. corporations.
(Does not apply to sole proprietors.) Record the decision. |
|
|
Dissolve your business officially
Obtain a "tax clearance" and file the required forms, such as a "certificate of dissolution."
|
|
|
Cancel state, county or city permits and licenses
Examples: Seller's permit, business license, and fictitious or assumed business name. |
|
|
Cancel your lease and insurance policies
|
|
|
Collect outstanding accounts receivable
before you notify customers you're going out of business. |
|
|
Notify your employees
Pay them their last paychecks within the amount of time required by state law.
|
|
|
Notify your customers
Fulfill any contractual obligations, if possible. Return any deposits or payments for goods not delivered or services not rendered. |
|
|
Liquidate saleable inventory
Consider a "going out of business" sale. |
|
|
Make final federal and state payroll deposits
|
|
|
Submit final sales tax forms and funds due up to the closeout date
|
|
|
Notify your creditors: suppliers, lenders, service providers, and utilities
|
|
|
Comply with "bulk sales laws"
|
|
|
Settle or pay all of your business debts
Money owed to your landlord, bank, suppliers, utilities, and service providers. |
|
|
Get letters stating that your bills are paid in full as you pay off each creditor
|
|
|
Cancel your business credit cards
|
|
|
Sell business assets
File IRS Form 4797, Sales of Business Property or, if you sell the bulk of your business assets to one buyer, file IRS Form 8594 |
|
|
File your final employment-related tax returns:
IRS Form 940, IRS Form 941, state tax withholding and wage reporting forms |
|
|
File your final income tax returns
checking the box stating that this is your final return. |
|
|
Leave contact information
with former business contacts, colleagues, and employees. |
|
|
Close your business bank account
|
