There are many reasons to close your business — market downturns, lawsuits, retirement, and more. Whatever the reason, it’s important to follow the proper steps to close your business properly and avoid unnecessary taxes, fees, and liabilities. This article will guide you on how to close your business in ct, including filing official documents with the state, terminating debts and agreements, and distributing assets.
The first step is to formally close your business through the state’s process of dissolution (for LLCs) or withdrawal (for corporations). The state offers ready-to-use forms for both, but you can also draft your own if you prefer. The documents must be submitted online or in person with the Secretary of State’s Commercial Recording Division.
Once the state approves your articles of dissolution, you must terminate your business’s agreement with any creditors and settle any outstanding debts. It’s a good idea to contact your attorney or accountant for more specific advice and guidance on how to do this. This step is important as failing to pay off creditors can allow them to pierce the corporate veil and hold you personally liable for the debt.
You’ll also need to close your company’s tax and state accounts. For example, if you’re a domestic business entity, you’ll need to file your final annual report and notify DRS that you’re closing your business. You’ll also need to send them a copy of your articles of dissolution along with your final sales and use tax return, Form OS-114.