Closing a business in Illinois is a complex process, and there are many steps to take to ensure that all legal, financial, and tax liabilities are settled. In this article, we will discuss how to close a business in Illinois, including the necessary steps to take and the fees to pay.

How to Close a Business in Illinois?

When closing a business in Illinois, it is important to contact the Illinois Department of Revenue (IDOR) to determine any tax liabilities. Additionally, the following steps should be followed for a successful closing:

• File final tax returns and terminate your EIN.
• File the required dissolution documents.
• Settle any remaining tax liabilities and other debts.
• Sell any assets of the business.
• Incorporators are authorized to dissolve a corporation ONLY before any shares have been issued AND before any directors have been named or elected. To dissolve a corporation in Illinois, you must submit in duplicate the completed BCA 12.20, Articles of Dissolution form by mail or in person to the Secretary of State.
• To dissolve an LLC in Illinois, you must file the Articles of Dissolution with the Secretary of State.
• To dissolve your LLC or corporation in Illinois, there is a $5 filing fee required.
• You must also obtain a Department of Revenue clearance before the Secretary of State will accept the Articles of Dissolution.

These steps should be taken in order to successfully close a business in Illinois. It is important to note that failing to meet all of the requirements could lead to legal and financial complications in the future.

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What is the process for shutting down an LLC in Illinois?

To get in touch with the Illinois Department of Revenue about your tax liabilities when you close your business, you have several options. You can use MyTax Illinois, call 217-785-3707, or reach out in some other way.

How should a business be shut down correctly?

Submit all necessary paperwork for the closure of your business, including a Final Return.
Provide any required benefits to your employees and give them the proper information regarding their termination.
Pay all taxes that are associated with the business.
Report payments made to any contract workers to the IRS.
Cancel your Employer Identification Number and close your business’s IRS account.
Retain all records related to your business activities.

What is the process for canceling my Illinois sales tax?

You can cancel your sales tax permit in Illinois by using the MyTax Illinois portal to submit a “Request to Close Account”, calling the state department at 217-785-3707, or by completing the “Questions, Comments, or Request” form.

What is the process for dissolving a corporation in Illinois on a voluntary basis?

Shareholders may choose to dissolve their company without any action from the board of directors and without a shareholders meeting, through unanimous written consent. Alternatively, dissolution can also be done with a vote at a shareholders meeting or with written consent from less than all shareholders.