Closing a business

01 · Be clear about the change you are making and who needs to agree.

Decision and authority

A pause, sale, handover and permanent closure involve different work. Write down the outcome you are considering and what could change your mind. You can prepare without treating a tentative decision as final.

Record who is authorized to decide and where the agreement will be kept. A target last trading day is a planning milestone; filings, payments and other commitments can have different dates.

02 · Give unfinished commitments a person, an action and a resolution.

People and promises

List the people affected and the work or information still owed to them. Separate employees and contractors, customer orders and deposits, ongoing services, and supplier commitments. Plan how and when each conversation should happen.

For employees, check applicable final-pay and notice rules before choosing dates. State rules may differ from federal rules. Ask the payroll or benefits provider what must continue and how people will obtain records afterward.

A message sent is an action taken. A refund received, an agreed handover or a written acknowledgment is a different milestone. Keep both visible.

03 · Separate what you know from what you still expect or need to confirm.

Money and assets

Make a dated list of money available, money still expected, payments and closing costs. Label estimates and disputed amounts. A hoped-for sale or unpaid invoice is not money already received.

For each asset, establish whether it is owned, leased, borrowed or subject to someone else’s interest. Record the intended action and who needs to confirm it.

If you may be unable to meet obligations, prepare the figures and questions for appropriate debt, accounting or legal help. Keep organizing your information; this plan does not decide payment priorities or distribute assets.

04 · Check the terms before deciding that a commitment has ended.

Agreements and premises

List leases, insurance, vendors and recurring arrangements. For each, locate the agreement, confirm the notice required and record the next action. Keep contractual dates separate from your intended closing date.

Plan the practical handback: keys, equipment, access, inspections, final bills and any deposit. Ask the insurer what protection may be needed after trading stops. Save confirmation of what was agreed and what remains disputed.

05 · Identify the right authority, the applicable period and the confirmation you need.

Filings and registrations

Keep formation location, operating locations, legal structure and tax treatment distinct. An LLC’s federal tax treatment can differ from its legal form. Use the responsible agency’s current instructions for the relevant year.

List federal, state and local accounts, registrations and permissions. Check each applicable requirement and date with the authority or person handling it. Record submission and acceptance separately.

The IRS closing guide covers final returns, employee reporting and business-account closure. Its information-return guidance should be checked for the payment type and tax year. This plan stores what you confirm; it does not select forms or calculate deadlines.

06 · Keep the access you still need; finish the records before turning it off.

Digital access and services

Inventory email, domains, phone, software and payment services. Decide what to keep, transfer or close, and when to review it. Consider how an account is recovered if its email or phone is disconnected.

Export records and open the exported copies before ending access. Check each payment provider’s handling of balances, refunds and disputes; Stripe specifically advises leaving an account open while further refunds or disputes are expected.

Record account names and safe document locations here. Keep passwords and recovery secrets in your existing secure arrangements.

07 · Make it possible to find the evidence after daily operations have ended.

Records and confirmations

Create an index of the decisions, agreements, submissions and confirmations that matter. Give it a custodian, a safe location and a way to request access after closure.

Retention depends on the kind of record and applicable obligations. Record the basis for a retention decision and a review date; do not assign every document the same disposal date. Retain necessary information securely and dispose of unneeded personal information appropriately.

08 · Leave yourself a clear account of what remains and where to return.

After trading stops

Review the plan after the last operating day. Keep unresolved payments, claims, filings, acknowledgments and correspondence on the action list. “Trading has stopped” does not mean every item is resolved.

Name a continuing contact and set the next review. Keep the editable file as well as a dated reading copy. If the plan changes, reopen the relevant work and preserve the earlier notes.

You can also record a trusted person helping you and one practical next step for yourself. Those details are optional and can be excluded from an advisor copy.