A common exit strategy to leaving a small business is simply closing the business down. If you have decided to close your business, there are various bureaucratic measures to take. Some of the things to remember when closing down a business includes:
- Voluntarily dissolve the corporation. This can be done through a resolution passed at shareholder’s meeting or through the personal representatives of the business at that time.
- If it applies, cancelling your business registration, partnership or sole proprietorship can replace dissolving a corporation.
- Close all of your payroll accounts with the Canada Revenue Agency (CRA).
- If you have dissolved your corporation, file a last tax return.
- Close your GST and HST accounts with the CRA.
- Close your PST/QST/RST accounts with the CRA.
Failure to properly shut down or dissolve a business could result in tax complications. Ensuring you have followed all of the above rules is necessary when choosing this exit strategy. T0 learn more about closing down a business, visit this government of Canada page.
If you are interested in selling your business to someone else, read this article on succession planning. To learn more about exit strategies and closing a business, contact the Winflow Financial Group. Our trained consultants can help you through all of the necessary steps involved in closing a business.