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Closing a Business: General Partnership and Sole Proprietorship

Closing a business is a multistep process that will take you several weeks to months to complete.   The following information is not intended as legal advice, these guidelines are provided to help you better navigate the filing process.

+ Notify Lenders
  • Notify all lenders and creditors of your plans to dissolve the business and settle remaining debt. If you are unable to pay your debts, you may want to consider filing for receivership or bankruptcy protection.
  • Contact the business’ creditors. It’s a good idea to discuss your financial obligations with your accountant, attorney, and insurers to ensure that you have everything accounted for.
  • You may need to close out your business bank account(s) and cancel your business credit cards. Consult your accountant or attorney prior to closing any account(s)
+ Notify Local City or Town
  • If you registered your business under an assumed or trade name, other than your own name, then you should cancel, that business name registration with your local city/town.
+ Contact IRS to close EIN

+ Cancel Registrations, Permits, Licenses and Business Names
  • To protect your finances, be sure to cancel all licenses and permits that you will no longer need. If you do not cancel, you may be liable for fees.
  • Contact your attorney and/or accountant for more information on your specific requirements.
+ Maintain Records
  • You may be legally required to maintain records, particularly tax and employment records, even after your business has closed. Record keeping requirements range between 3 to 7 years. Contact your attorney and/or accountant for more information on your specific requirements.