How to close your business
August 27, 2012 – TaxTalk Blog
During the last few weeks we have addressed the new electronic filing requirements for businesses reporting sales and withholding taxes. We have journeyed through filing do’s and don’ts, online tools, how to pay your taxes, etc. We thought we’d come full circle and end this business series with information about how to close your business.
Closing a business is not as simple as just closing the door one last time and going home. Besides getting rid of your inventory and your assets, closing your bank accounts, etc., you need to do some final business with the state of Indiana.
Here are some steps to add to your “must do” list to close your business accounts with the Department of Revenue.
Step 1 Make sure all of your business accounts (sales/use tax, withholding, food and beverage, etc.) are up-to-date and paid in full. Also, make sure the Department’s records are current and list the correct responsible officers for your business.
Step 2 File Articles of Dissolution with the Secretary of State’s office (www.in.gov/sos/). Once approved, you will receive a certificate of dissolution.
Step 3 Complete a business tax closure Form BC-100 for each location. This step is CRUCIAL. If the locations are not properly closed and returns are not filed, you may incur fees and costs that would be due, even if no tax is due. Please note this form will close only the tax accounts specifically indicated on the form, and will not legally dissolve your business. It is important to include the exact date the business ceased operations for each tax type on the form. This will prevent future notices for missing returns.
Step 4 Send your completed BC-100(s), a copy of the certificate of dissolution (from Step 2 above) and a completed Form IT-966 (required for all corporations or organizations dissolving in Indiana) to the Department.
If your business is a corporation:
- if you choose to dissolve, liquidate or withdraw it, make sure you file Form IT-966 (see Step 4 above). File your last corporate income tax return, marking it “FINAL”.
- if you are closing it, but choose NOT to dissolve it, you must file a Business Entity Report. If you fail to do so, the Secretary of State’s office will administratively dissolve your corporation. Then you will have to go through the red tape and costs to get your corporation reinstated.
- Be sure to follow up with the other state agencies, such as the Secretary of State’s office, Indiana Department of Workforce Development and/or the Indiana Attorney General’s office. They may need a Notice of Voluntary Dissolution to fulfill all the requirements to dissolve.
Finally, if you have any questions or concerns, call, visit or e-mail us for information specific to your needs. We look forward to working with you.
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