Checklist for Closing Your Business: 20 Things You Need to Do

by Bethany K. Laurence, J.D.

Closing your business often requires more steps than starting it.

1. Vote to close the business following the procedures set out in your organizational documents or your state’s business statutes. (This doesn't apply to sole proprietors.) Record the decision.
2. Dissolve your business officially: Obtain a "tax clearance" if necessary and file the required forms, such as a "certificate of dissolution."
3. Cancel state or county permits and licenses, including your seller's permit, business license, and fictitious or assumed business name.
4. Cancel your lease and insurance policies. Give your landlord the required notice stated in your lease -- at least 30 days.
5. Collect outstanding accounts receivable (before you notify customers you're going out of business).
6. Notify your employees and plan to pay them their last paychecks within the amount of time required by state law, and if your state requires it, the value of accrued, unused vacation days as well.
7. Notify your customers and fulfill any contractual obligations, if possible. Return any deposits or payments for goods not delivered or services not rendered.
8. If you're sitting on saleable inventory, consider a "going out of business" sale.
9. Make your final federal and state payroll deposits.
10. Submit final sales tax forms and funds due up to the closeout date.
11. Notify your creditors: suppliers, lenders, service providers, and utilities.

Buy it now! The Complete Guide to Selling a Business by Attorney Fred S. Steingold.

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