While your business shutdown "to-do" list will likely differ by state and type of business, use the following checklist as a starting point.

Employees

1. Notify your employees and pay them their last paychecks within the amount of time required by state law. Make sure you pay any accrued benefits as required by State law.
2. Make your final federal and state payroll deposits.
3. File your final employment-related tax returns (IRS Form 940 and 941, and all state tax withholding reporting forms).
4. Close out any profit sharing or retirement plans. Transfer as required by law.

Legal

1. Have a board-approved vote to dissolve the corporation and document the proceedings.
2. File the required State forms to dissolve the corporation. Obtain the “certificate of dissolution.”
3. Comply with "bulk sales laws" if required. (If you plan to sell off the majority of your inventory and your business is retail, wholesale, or manufacturing, you may need to notify your creditors a specific number of days before you close your business, and in some states, to publish a notice of your impending closure in a local newspaper.)

Taxes

1. File your final income tax returns, checking the box stating that this is your final return.
2. Make final federal deposits.
3. If you sell the bulk of your business assets to one buyer, file IRS Form 8594, Asset Acquisition Statement.
4. If you sell business assets, file IRS Form 4797, Sales of Business Property.
5. Send out final 1099 forms.

Operational

1. Cancel state or county permits and licenses, including your seller's permit, business license, and fictitious or assumed business name.
2. Settle workers compensation and general liability final audits and deposits.
3. Cancel all leases: auto, office, equipment, machinery, etc.
4. Cancel all insurance policies: General, E&O, D&O, auto, life, disability.
5. Collect outstanding accounts receivable.
6. Pay all outstanding accounts payable.
7. Notify your customers and settle any outstanding issues.
8. Submit final sales tax forms and funds due up to the closeout date.
9. Notify your creditors: suppliers, lenders, service providers, and utilities.
10. Confirm with each creditor that your bills are paid in full.
11. Cancel your business credit cards.
12. Close your business bank account.
13. Close 401k or Defined Benefit Plan.
14. Shut down Company Medical Plan.