NCET Biz Tips: How to close your business

While the process of closing your business may not be as complicated as starting your business, there are still important steps to consider so that your clients, suppliers, and creditors aren’t left wondering where you’ve gone to! Businesses may differ in their needs related to discontinuing service, but the following steps are typical to ensure you are closing your business the right way.
For clarity, this article will address the Nevada-specific steps you should take to close your business, including dissolving your business, cancelling permits and licenses, and resolving financial obligations. Many additional steps may be needed to close your business appropriately. You can see a comprehensive list of those steps at https://www.nolo.com/legal-encyclopedia/checklist-closing-business-20-things-29027.html.
In closing out your licenses and accounts, we recommend starting at the city/county level and then moving onto state level and federal level thereafter. City/county licenses are dependent on your business being licensed at the state level, so it's best not to close out state licenses while city/county ones are still active.
CITY/COUNTY Requirements
Closing your business require the support of the majority of ownership in your business entity, unless you own a Sole Proprietorship, and should be documented with a written agreement. After you’ve decided to close, you should contact any city or county licensing authorities you are registered with to cancel any seller’s permits, licenses, and fictitious or assumed business names you have filed under.
STATE REQUIREMENTS
Contact the Nevada Secretary of State to file dissolution documents. Failure to do so will expose you to continued tax and filing requirements.
The Nevada Department of Taxation also requires notification when closing a business. Your account may be terminated by written correspondence, phone or in person. Make sure you have the following information included:

• Nevada Taxpayer ID Number (TID) of the business to be closed
• The ‘DBA’ name and location of your business
• Date the business will be closed (or sold, and who it will be sold to)
• Reason business is closing
• The status of all business assets and inventory, including equipment and furniture. If assets were sold, indicate who they were sold to
• Contact name, phone number, and mailing address for any refunds you may be entitled to.

To close all Nevada business locations with Sales Tax, Use Tax, and/or Commerce Tax accounts under a single Nevada Taxpayer ID (TID), use the ‘Close Out Form’, available from the Nevada Dept. of Business and Industry.
As long as your Nevada Unemployment Account is active, you must complete your final Employer’s Quarterly Contribution and Wage Report for Nevada Unemployment Insurance Division at Department of Employment, Training and Rehabilitation (DETR). If you are closing your business or anticipate having on employees in the future, you may close our account by submitting a written statement to the Division or by contacting the Online Registration Helpdesk at (866) 429-9758. Learn more about wage reporting and unemployment insurance in Nevada with this helpful FAQ page.
FEDERAL REQUIREMENTS
The Internal Revenue Service requires that you file an annual return for the year the business closed. Like the city/county dissolution process, this process is different for Sole Proprietorships, Partnerships, and Corporations. If you have employees, you must file the final employment tax returns (Forms 940 and 941), in addition to making final federal tax deposits on the taxes. Attach a statement to your return showing the name of the person keeping the payroll record and the address where those records will be kept. You will also need to file returns to report the disposal of business property, exchanges of like-kind property and/or change of form of business. Follow the steps available on the IRS ‘Closing A Business’ page.
As mentioned above, this is not a comprehensive list of steps to take when closing your business. If you need more advanced or personalized help in any aspect of your business, sign-up for no-cost, confidential small business advising today at nevadasbdc.org.
Brad Scribner, Community Project Manager for the Nevada SBDC, connects, promotes, and supports Nevada businesses through the Made in Nevada program and the Nevada Entrepreneur Network. NCET is a member-supported nonprofit organization that helps people explore business and technology. (www.NCET.org)