your business shutdown "to-do" list will likely differ by state and type of
business, use the following checklist as a starting point.
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.
Make your final federal and
state payroll deposits.
File your final
employment-related tax returns (IRS Form 940 and 941, and all state tax
withholding reporting forms).
Close out any profit
sharing or retirement plans. Transfer as required by law.
Have a board-approved vote
to dissolve the corporation and document the proceedings.
File the required State
forms to dissolve the corporation. Obtain the “certificate of dissolution.”
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.)
File your final income tax
returns, checking the box stating that this is your final return.
Make final federal deposits.
If you sell the bulk of
your business assets to one buyer, file IRS Form 8594, Asset Acquisition
If you sell business
assets, file IRS Form 4797, Sales of Business Property.
Send out final 1099 forms.
Cancel state or county
permits and licenses, including your seller's permit, business license, and
fictitious or assumed business name.
Settle workers compensation
and general liability final audits and deposits.
Cancel all leases: auto,
office, equipment, machinery, etc.
Cancel all insurance policies:
General, E&O, D&O, auto, life, disability.
Pay all outstanding accounts
Notify your customers and
settle any outstanding issues.
Submit final sales tax
forms and funds due up to the closeout date.
Notify your creditors:
suppliers, lenders, service providers, and utilities.
Confirm with each creditor
that your bills are paid in full.