Service
Closing or selling a business
Closing or selling a business is more than a state filing; the tax, payroll and accounting records have to be closed as well. We list each step in order and follow every agency's process until it is finished.
2026 examples. Figures, rates and dates on this page change by year; check current IRS and state guidance before you rely on them.
What the service covers
- 01Final federal and state income tax returns
- 02Corporate dissolution reporting, including Form 966
- 03Final payroll returns and Forms W-2
- 04Reporting an asset or stock sale (Form 8594 where required)
- 05Closing balance sheet and final bookkeeping
- 06Closing state tax accounts and the IRS business account
What steps does closing involve?
The process differs by entity type, but common steps include the owners' decision, state dissolution filings handled with your attorney, final payroll and sales tax filings, a closing balance sheet and final income tax returns.
Some states require tax clearance before an entity can be dissolved, and settling debts can take months. The timeline depends on what the business still owes and is owed.
What matters in a sale?
Selling the owners' shares and selling the business's assets are different transactions with different tax results. Which liabilities stay with the seller and which pass to the buyer is put in writing.
Employee records are updated as of the sale date, and filings and payments for periods before the sale are checked separately.
Related calculators
Related guides
Closing a business: a federal and state tax checklistTax steps for closing a business: final returns, Form 966, final payroll filings, reporting asset sales, closing the IRS account and dissolving with the state.
Sole proprietorship, LLC or S corp: the key differencesHow a sole proprietorship, an LLC and an S corporation differ in liability, federal tax treatment, setup steps and bookkeeping, plus questions to ask first.
Meeting
Call to talk about closing or selling a business for your business. Bringing the documents listed here to the first meeting makes the review easier.