Dissolving Your Business: What Tax Steps Should I Take?
Once you make the decision to close down your business, you will be faced with the process of legally dissolving your entity, which includes taking certain tax steps to ensure you are fully compliant with state and federal laws. At Waitz and Downer, we want to be certain that you properly dissolve your business to avoid financial repercussions in the event of an IRS audit. While it is advisable to seek advice from a legal professional who specializes in business dissolutions prior to moving forward, be certain you keep these tax steps in mind prior to hastily closing the doors.
- Make any final tax deposit payments that are due.
- File an annual tax return for the last year your business was in operation, including any dissolution/termination forms as required for dissolution of your business’ specific entity.
- File final returns related to employees, such as employment tax returns, payroll, employee pension/benefit plans, etc.
- Close employee-related accounts, such as worker’s compensation and unemployment insurance.
- Document and report the selling of assets, stocks, shares, and property.
- Report capital gains/losses.
- Maintain your business records for a period of 7 years.
- Being that dissolving a business can be a complex process that is unique to your business, be certain you file all additional documents as required by your specific state and based upon business entity.
Business Attorney in Baton Rouge LA
When your business has come to the end of its life, there are loose ends that must be tied up to prevent its full closure with taxing agencies. The expert legal team of Waitz and Downer in Baton Rouge can guide you through the complicated maze of dissolving your business, so you can move to other endeavors. One of our knowledgeable and experienced business attorney would be happy to answer any questions you may have about the tax steps you must take to sufficiently dissolve your particular business.
If you are in the Baton Rouge area, contact our team today by calling (985) 876-0870. With over 50 years of experience, the attorneys of Waitz & Downer have the business law background to provide you with the services you need.