5 Things To Do After Closing Your Business
You have made the difficult decision to close the doors to your business. Remember these tips to make the process smoother.
File a final federal tax return. You do not have to wait until the end of the current tax period to file a final return.
Close your state tax accounts. This will stop the state agencies from expecting state tax returns and assessing penalties against your business Let the federal government know that you will no longer have employees and will no longer be filing 940 and 941 return, otherwise they will expect them and potentially file them for you and estimate your taxes.
Consult your insurance broker about continuing coverage and purchase liability tail insurance if needed to continue coverage after you stop operating and paying your insurance premiums.
Leave a bank account open in case refunds or checks are returned to the business. You cannot cash the checks without a bank account in the business's name.
Continue to renew your entity with your state, even though you filed a final tax return. Do this in case the business is sued for any reason. This will make it more difficult for an unscrupulous attorney to try to sue you personally. They will lose that argument, but it’s expensive and irritating to get rid of them.
Seattle Bankruptcy Attorneys
Do you have questions about and bankruptcy and business law? Contact the experienced Seattle bankruptcy attorneys at Wenokur Riordan PLLC today at (206) 724-0846 to discuss your situation.
