Closing a Business Checklist
- Plan closure in advance
- Discuss strategy with partners
- Announce intent to dissolve
- File articles of dissolution
- Notify IRS within 30 days
- Admit it’s time to close
- Follow required process
- Protect assets and credit
- Clearly notify stakeholders
- Prevent lawsuits
Final Steps and Requirements when Closing a Company
You must file a final tax return when closing your company. This notifies the IRS your business closed. Requirements and deadlines depend on the company type. Take care of employees.
The IRS has steps when closing a business: File a final return and related forms. Notify within 30 days. Finish payroll taxes. Pay owed taxes. Continue payments after closing. Know state tax laws also apply.
Develop an exit strategy with ten steps:
Closing a business takes weeks or months. With a plan and checklist, the process is easier. First, formally agree to close. For a corporation, hold a Board meeting. Take an official vote recorded in minutes. Get majority shareholder approval. Without enough votes, you likely can’t dissolve.
Closing improperly causes issues. You must notify stakeholders to prevent lawsuits. Protect assets and credit. Tie up loose ends over months. Closing quickly leaves problems.