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Steps to Take When Closing Your Business

Whether it is due to financial issues, you wanting to move on to something new, or something else, closing your business is not as simple as locking up the doors and walking away. If you are planning to close your Pennsylvania business, there are certain steps you are going to need to take to effectively close your business, protect yourself from future liability, and remain in compliance with the law.

Steps to Take When Closing Your Business

A business that is ceasing operations in Pennsylvania must make steps to remove itself from tax records and public records as well. The business must be in good standing in order to close and you, as the business’s owner have an obligation to notify any appropriate state agencies about the business’s closing. Failure to do so could expose you to tax liability and the continued risk of facing civil liability. You will also need to contact other entities that were involved with the registration of your business. This may include a special registration agency or professional licensing board.

It should be noted that the exact process for closing a Pennsylvania business will vary depending on the structure of the business. A business will need to be dissolved, terminated, or withdrawn depending on its structure. For instance, limited liability companies need to be terminated, as do limited liability partnerships, but domestic corporations need to be dissolved and foreign associated need to be withdrawn.

While the precise steps you need to take to close your business may vary, there are some general steps that most, if not all business owners will need to do to close their Pennsylvania business. For starters, the business will need to comply with any Pennsylvania Department of Revenue filing requirements and satisfy any outstanding liabilities with regard to that department. If the business has employees, any liabilities and filing requirements of the Department of Labor and Industry will also need to be satisfied.

Any business accounts held with the Pennsylvania Department of Revenue or the Pennsylvania Department of Labor and Industry will need to be closed. You will need to get Tax Clearance Certificates from the Pennsylvania Department of Revenue and the Pennsylvania Department of Labor and Industry as well, if they are applicable. Look into any paperwork that the Pennsylvania Department of State may require to either dissolve your business entity or terminate your business entity and complete all accurately and in full.

This list of steps you will need to take to close your Pennsylvania business is not exhaustive, but it is a start of the basic steps you will need to take. There is likely to be many other things on your business closing to-do list. For example, if your business has employees, you may want to get into contact with your workers’ compensation insurance carrier in order to get information about details relating to your workers’ compensation policy.

Business Law Attorneys

If you are closing your Pennsylvania business, you want to do it the right way to protect yourself from what may be substantial liabilities and civil penalties. Get in touch with trusted business law attorneys at Jones, Gregg, Creehan & Gerace for assistance. Contact us today.