| Dissolution of business could be for variety of reasons | | | | * File final quarterly or annual employment tax |
| for example: bankruptcy, retirement, or a change in | | | | form. |
| career direction. When a business entity is no longer | | | | * Issue final wage and withholding information to |
| doing business or even if it was never used for | | | | employees. |
| anything, it is very important that it follows the legal | | | | * Report information from W-2s issued. |
| steps in "winding itself up" as a legal entity. | | | | * File final tip income and allocated tips |
| A business Corporation, S Corporation or an LLC is an | | | | information return. |
| entity created under authority granted by the state. Its | | | | * Report capital gains or losses. |
| existence may only be terminated by the state. The | | | | * Report partner's/shareholder's shares. |
| Business Law provides a procedure for dissolving a | | | | * File final employee pension/benefit plan. |
| corporation or an LLC. All legal entities can only be | | | | * Issue payment information to sub-contractors. |
| dissolved through formal action, not by a letter or | | | | * Report information from 1099s issued. |
| phone call. You remain liable for all taxes, assessments, | | | | * State (Where your business is formed): |
| fines, penalties and interest until you receive a | | | | * You must file an annual return for the year you |
| certificate of dissolution from the Secretary of State. | | | | go out of business. |
| There are typical actions that are taken when closing | | | | * If you have employees, you must file the final |
| a business on Federal and State Level: | | | | employment tax returns with your State. |
| Federal (IRS) | | | | * Make final State tax deposits. |
| * You must file an annual return for the year you | | | | * File final quarterly or annual employment tax |
| go out of business. | | | | form. |
| * If you have employees, you must file the final | | | | * If you collect Sales Tax in your State. File final |
| employment tax returns. | | | | Sales Tax Return. |
| * Make final federal tax deposits. | | | | |