What paperwork needs to be done when closing a business?
Question: I closed my business, what governmental agencies do I have to contact and inform them of my unfortunate business demise?
Answer: My sympathy, first and foremost.
Then the answer is it could be a few; it could be several.
The most important and often overlooked is formally dissolving your legal enterprise with the Colorado Secretary of State. This particular online filing takes about 5 minutes and includes a $25 filing fee.
If you have a State wage withholding tax license and/or State sales tax license, then you should file Form DR 1102 – Account Change or Closure. This manually filed Colorado Dept of Revenue form can be located near the front of your small blue booklet – labeled either as Employer’s Withholding Tax Forms or Colorado Sales Tax Returns.
No fee is payable.
If you have a State unemployment insurance account number, then you should file Form UITL-2 – Employer Change Request. This manually filed Colorado Dept of Labor & Employment form can be obtained online at http://www.colorado.gov/cs/Satellite/CDLE-UnempBenefits/CDLE/1248095315884.
No fee is payable.
Don’t forget to contact your local government agencies should you also have a county and/or city sales tax license or separate home occupation permit.
Finally, check the “final” box on your annual Federal and State business income tax returns should you be taxed as an S Corporation (Form 1120S), C Corporation (Form 1120) or Partnership (Form 1065).
And do the same with your final commercial personal property declaration schedule (yellow legal-sized form) due April 15th with the appropriate Colorado County.
Good luck in your new endeavors!
