Closing a Business Checklist
There are typical actions that are taken when closing a business. You must:
- File an annual return for the year you go out of business
- If you have employees, you must file the final employment tax returns, in addition to making final federal tax deposits of these taxes
- Also, attach a statement to your return showing the name of the person keeping the payroll records and the address where those records will be kept
- You will also need to file returns to report disposing of business property, reporting the exchange of like-kind property, and/or changing the form of your business.
Checklist for closing a Business
- Make final federal tax deposits
- File final quarterly or annual employment tax form
- Issue final wage and withholding information to employees on Form W-2
- Report information from W-2s issued, on Form W-3
- File final tip income and allocated tips information return (if applicable)
- Report any capital gains or losses
- Report partner’s/shareholder’s shares
- File final employee pension/benefit plan (if applicable)
- Issue payment information to sub-contractors, on Form 1099
- Report information from 1099s issued
- Report corporate dissolution or liquidation
- Consider allowing S corporation election to terminate
- Report business asset sales
- Report the sale or exchange of property used in your trade or business.
Forms
