Believe it or not, when the time comes to close your business, there is a lot of work to do. You can’t just shut your doors and hope the IRS goes away, because it won’t! There are different reasons for closing a business and a variety of methods to complete the process. For example, you may file for bankruptcy, create a new business structure, or sell the business.
On the IRS website, you can find a convenient checklist that outlines the different forms that need to be completed. This includes reporting capital gains or losses, issuing payment information to sub-contractors, and making your final federal tax deposits.
Almost every business decision has major tax implications. Even seemingly innocuous decisions to choose a business structure or a specific accounting method can completely alter your tax obligations. It is essential for you to check out the IRS website, as it features all the details you need when it comes to opening, closing, or operating a business. If the information is confusing, get in touch with a qualified accountant for advice today.