Discontinued Operations:
Business Closing
Whether you’re closing a branch or shutting down your business completely, there are a variety of factors
you need to consider as you go through the process of discontinuing operations. The IRS and the Small
Business Administration recommend the following steps to help you tie up any loose ends and ensure
your affairs are in order.
General Considerations
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Decide with your partners or co-owners to dissolve your business entity.
Document the decision with a written agreement.
Enlist the help of a professional advisor such as a lawyer or accountant who is
familiar with business closings.
Develop a written schedule outlining the steps that your closing procedure will
t ake from beginning to end.
Compile a list of all assets. This should include preforming a physical inventory
of all products, materials and equipment.
Notify all employees and customers of the closing.
If you lease any property, buildings or other equipment, alert the leasing entity
of your decision to discontinue operations.
Collect any outstanding accounts.
Resolve or transfer all contractual obligations.
Liquidate or transfer all assets.
Close or transfer all accounts used for business operations.
Legally dissolve your business if it is an LLC or corporation. Consult your
attorney if you are unsure if you need to file dissolution papers.
Cancel all registrations, licenses and permits, along with any business names
they may be in.
Store business records. Legally you may be required to keep certain tax and
employment records for up to seven years.
Address any outstanding tax responsibilities, specifically the ones discussed
below.
Federal Tax Responsibilities
Make your final federal tax deposits.
File your final quarterly or annual employment tax form.
Issue final wage and withholding information to employees.
Report information from issued W-2s.
Provided by: Marshall & Sterling Insurance
300 Route 23B Leeds, NY 12451
800-724-0695
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