​I’m Done: How to Shut the Doors to Your Business Properly

When it is time to close your business, you can’t just turn off the lights and walk away. To protect yourself from unexpected surprises down the road, you need to properly dissolve your business entity.

Proper dissolution involves specific steps, state notifications, tax obligations, and managing creditor claims.

1. Notify the State of Incorporation

To officially shut down, you must notify the State of incorporation that you have decided to dissolve the business entity. This notice goes directly to the Secretary of State.

2. Notify Key State Agencies

In addition to the Secretary of State, several other state entities must receive notice of your dissolution:

• Bureau of Workers’ Compensation

• Department of Job & Family Services

• State Taxing Authority

3. Settle Your Tax Obligations

Before wrapping up operations, you must ensure that you have made the proper payments on sales taxes and other taxes due from the business.

4. Notify Creditors

In some cases, you are required to notify creditors where they should send any claims against the company.

Work With an Experienced Attorney

Do not try to close your business on your own. Working with an attorney ensures every step is handled correctly so that you are not surprised years later by unresolved claims or outstanding liabilities.

Ready to dissolve your business entity the right way?