How to Close a Small Business
Entrepreneurship Friday, February 19th, 2010While everyone talks about starting a small business, nobody really wants to tell you how to close a small business. The reason is that nobody wants to talk about negative experiences or failures; however, the fact is that closing a small business does not necessarily equal to business failure. Closure of a small business could happen due to a profitable sale to a corporation, a merger with a large business or simply, a personal decision of the owner to pursue other interests.
Whatever the reason behind closure is, as the owner of small business it is your responsibility to close the business formally and fulfill all regulatory requirements involved in closing a business.
How to Close a Small Business – The Most Important Items
1. Deposit your final Federal taxes through EFTPS or 8109-B
2. Issue information to employees about final wages and withholding using Form W-2 and report information from W-2 issues to IRS using Form W-3.
3. File the appropriate employment tax form relevant to your business type for the quarter or year.
4. Report your capital gains/losses
5. Report the sale of business assests
6. Report the shares held by the shareholders or partners
7. File the final employee pension/benefit plan
For detailed information, you can refer to the checklist provided by IRS for closing a business.
There may be some local or state government requirements that you will need to fulfill. Please visit your state and local government website before finally closing your business.
The SBA also provides helpful information on how to close a small business that you should refer to before locking the doors of your business.
In the end, we want your small business to be successful and hope that the reason you read this post is because you are planning to close your small business for a good reason.
Short URL: http://www.betadaily.com/?p=5508
Posted by Vikrant
on Feb 19 2010. Filed under Entrepreneurship.
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