A typical business dissolution involves:

1. Payment of all of the remaining liabilities of the company in conjunction with formal notification of all suppliers, distributors, and others with whom the business has recently done business regarding the companys impending closure.

2. Formal closure of all of the businesss government-related accounts. Such accounts include accounts for workers compensation, unemployment, payroll taxes, sales taxes, post office boxes, and the like. The last tax return of any type filed should be marked final.

3. A business legally organized or registered with a particular state (e.g., most LLCs, corporations, and certain partnerships) will likely need to file dissolution paperwork with that state. Some states also require that the business post a public notice of business closure (or impending business closure), usually in an appropriate newspaper or on an appropriate website. Before granting a company formal dissolution, many states require notification from their states tax department that all necessary final tax returns have been filed and all taxes have been paid.

4. The very last item that should be terminated is the businesss checking account.

True

False