Decide on a business closing

If you are a sole proprietor, the decision to close your business is yours alone. However, if your business is a corporation, limited liability company (LLC) or partnership, a vote must be taken and the decision to close must be agreed upon by whatever percentage is required by your state's business statutes. If your business is a corporation or a LLC it must be officially dissolved so you are no longer responsible for tax filings.

I recommend: Check your state's business state's business statutes regarding closing a business. NOLO provides links to all state business statutes. The forms needed for dissolving your business, if you are a corporation or a LLC, are available from the secretary of state website for you state. State and Local Government on the Net provides links to each state's secretary of state website.

Do the paperwork for ending a business

Cancel all licenses and permits that your business has with your state and local government. If you have been using a business name, file an abandonment of your business name with your county clerk's office. After your employees and customers have been notified of your business closure, publish the abandonment of your business name in your local newspaper so your community knows that any further dealings they do with a business under that name is no longer yours. File all necessary forms with the IRS.

I recommend: The Internal Revenue Service provides a checklist of forms for going out of business. The IRS TaxMap provides answers to questions. Use an attorney that specializes in business closing if you need help or advice.

Get help with closing a business basics

There are resources available for the small business owner to make the transition out of business an easier one. Turn to other business owners, small business owner organizations, and use resources available on the Internet to make sure you do not overlook anything while closing your business.

I recommend: Volunteers at Score offer advice and help to business owners free of charge. The U.S. Small Business Administration (SBA) offers assistance and information on how to liquidate and close a small business. FindLaw provides a checklist to keep you organized while going out of business.