How Do I Close My Small Business in Illinois? Closing a Business: Requirements and Steps

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To properly close your company, you must follow specific requirements and steps set by the IRS and depending on the type of business you operate.

Final Tax Return and Steps for Closing

  • File a final tax return that notifies the IRS of your business closure.
  • Tailor the type of return to your specific business.
  • Ensure to take care of any outstanding employee-related matters.

Exit Strategy with Ten Steps

  1. Plan closure in advance.
  2. Discuss strategy with partners.
  3. Announce intent to dissolve.
  4. File articles of dissolution.
  5. Notify the IRS within 30 days.
  6. Acknowledge the need to close.
  7. Follow the prescribed closing process.
  8. Safeguard assets and credit.
  9. Clearly communicate with stakeholders.
  10. Implement measures to prevent potential lawsuits.

Proper Closure and Potential Issues

  • Properly notifying relevant parties and addressing loose ends over a period of weeks or months is essential to avoid complications.
  • Develop a structured closure plan to ensure a smoother process, including gaining necessary approvals and agreement to dissolve.

IRS Procedures When Closing

  • File all final returns and associated forms with the IRS.
  • Notify the IRS within the required 30-day timeframe.
  • Address outstanding payroll and tax obligations promptly.
  • Continue necessary payments post-closure and adhere to state tax laws.

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