How to close your business
October 24, 2007
In this final installment of our business-tax series, Joetta and Jay discuss some of the steps you need to take to close your business.
So you have decided to close your business. Hopefully, you’re closing because you’ve hit the lottery, or you’re moving on to an even better opportunity. But whatever the reason, you need to know how to close your business with the Department of Revenue.
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.
Close your business accounts with the Department of Revenue.
- All of your business accounts (sales/use tax, withholding, food and beverage, etc.) must be up-to-date and paid in full.
- Make sure the Department’s records are current and list the correct responsible officers for your business.
- File a business closure request 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. In this case, an ounce of prevention is worth a pound of cure.
If your business is a corporation:
- And you choose to dissolve it, make sure you file Form IT-966. File your last corporate income tax return, marking it “FINAL”.
- And you are closing it, but choose NOT to dissolve it, you must file the Business Entity Report 48725. 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 the corporation reinstated.
Finally, if you still have question or concerns, call, visit or e-mail us for information specific to your needs.
We began this business-tax series last May; the inaugural article talked about starting a business in Indiana. Since then we have journeyed through sales and withholding tax do’s and don’ts, online tools, how to pay your taxes (and what to do if you are late in paying) and how to grow your business (find these in the archived articles). Appropriately, this series ends with how to close your business.
I want to thank Joetta and Jay who have taken up the challenge of writing each blog in the series. And now the torch is returned to me to keep the tax fire alight with upcoming blogs on new tax laws and changes you will need to know about for the 2008 tax season. Yes … that means I must be the bearer of less delightful news … only two months away until the 2008 tax-anxiety season begins!
- What does the state require to start a business?
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- How do I obtain a state tax number to collect sales tax?
- Who can I contact about Indiana income tax?
- Where do I go for tax forms?
- Where is my state tax refund?
- I filed my Indiana tax return. I owe, but am unable to pay at this time. What sh...
- I worked in Indiana six months. Then I worked six months in another state. How s...
- Know when I will receive my tax refund.
- File a part-year Indiana tax return.
- File my taxes as an Indiana resident while I am in the military, but my spouse is not an Indiana resident.
- Take the renter's deduction.
- Pay my tax bill in installments.
- Claim a gambling loss on my Indiana return.
- Have more time to file my taxes and I think I will owe the Department.
Welcome to Tax Talk, hosted by DiB (dye-bee), the Indiana Department of Revenue’s individual income tax guru. DiB, who says she’s been with the Department “since the earth cooled” (though it’s actually 30+ years), writes and develops Indiana’s individual income-tax instruction booklets and forms. DiB created Tax Talk to address Indiana individual income tax questions and issues during the filing season. If you would like to submit a question or topic suggestions, please send those to DiB at feedback@dor.in.gov
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