{"id":4656,"date":"2016-04-04T10:47:37","date_gmt":"2016-04-04T15:47:37","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/closing-a-business\/settlement-and-distribution-of-assets-checklist.html"},"modified":"2024-05-23T00:57:33","modified_gmt":"2024-05-23T05:57:33","slug":"settlement-and-distribution-of-assets-checklist","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/closing-a-business\/settlement-and-distribution-of-assets-checklist.html","title":{"rendered":"Settlement and Distribution of Business Assets"},"content":{"rendered":"\n
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Settlement and Distribution of Business Assets<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last reviewed\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Small businesses must follow the same procedures as larger companies when closing down. State and federal laws demand disclosures from small business owners about their taxes, dividend distributions, and final accounting. Depending on your business structure<\/a>, you may need to file more documents showing you have officially closed your business, sold company assets, and contacted creditors and vendors.<\/p>\r\n

The Internal Revenue Service (IRS) and state tax departments must get your final tax returns. You need to file a certificate of cancellation if you incorporated, and you’ll need to cancel your fictitious business name or DBA if you had one. There’s much more to dissolving a company<\/a> than just closing the doors one last time.<\/p>\r\n

See FindLaw’s Closing a Business<\/a> section to learn more about the process.<\/p>\r\n

Sole Proprietorships<\/h2>\r\n

Even a sole proprietorship<\/a> has a few things to do. A sole proprietor can avoid some of the state filings and tax requirements. You should still ensure you’ve finished all your business obligations.<\/p>\r\n