Business Dissolution Paperwork Checklist
You’ll want to make sure you keep accurate and complete business records when you choose to dissolve your corporation. This checklist will help you get things in order and create a bulletproof paper trail.
* When you have voted to close your business, find out if you need the following forms by contacting the appropriate agency:
* Tax Clearance
* Consent to Dissolution
* Articles of Dissolution
* Gather all paperwork for open accounts and plan a strategy for debt collection.
* Make sure you comply with sales laws. Find out if your state has a bulk sales law. File IRS form 4797 if you’re selling off business property or 8594 if you’re selling off a group of assets.Â
* Be prepared to pay your payroll taxes. Set up tax forms 940 and 941 to correspond to your employees’ last day and check off the box as “last return.” Be aware of the benefits you need to pay out according to your state laws.
Make arrangements to pay all debts you owe to the government. You may also need to file with the IRS when closing your business, depending on your corporation’s situation: Make final federal tax deposits (Form 8109-B)
* File final quarterly or annual employment tax form. (Form 940)
* Employer’s Quarterly Federal Tax Return (Form 941)
* Issue final wage and withholding information to employees (Form W-2)
* Report information from W-2s issued.
* Transmittal of Income and Tax Statements (Form W-3)
* File final tip income and allocated tips information return.
* Employer’s Annual Information Return of Tip Income and Allocated Tips (Form 8027)
* Report capital gains or losses.
* U.S. Individual Income Tax Return (Form 1040)
* Capital Gains and Losses (Form 1120)
* File final employee pension/benefit plan
* Annual Return/Report of Employee Benefit Plan (Form 5500)
* Report corporate dissolution or liquidation. (Form 966)
* Report business asset sales. (Form 8594)
* Report the sale or exchange of property used in your trade or business. (Form 4797)