Are you trying to figure out how to close a small business in Texas? Closing a business can be a complex process, and you must make sure to follow the applicable laws in order to successfully close a business in Texas. This article will provide step-by-step instructions on how to close a small business in Texas, including what documents to submit to the Comptroller’s office, winding up internal affairs, notifying creditors, filing final tax returns, and more.

How to Close a Small Business in Texas?

Closing a small business in Texas requires you to take a few key steps to ensure the process is legally sound. Before you begin the closure process, it’s important to review the rules and regulations for closing a business in Texas. The Texas Secretary of State’s website has a terminations section that outlines the state’s rules for closing a business. To dissolve a Texas LLC, you must file a Certificate of Termination with the Secretary of State. Additionally, all wind-up measures must be complete before the Certificate can be approved.

Once you’ve reviewed the rules for closing a small business in Texas, you can begin the process by following these steps:

Steps to Close a Small Business in Texas

  • Step 1: File any Annual Franchise Tax Reports and other documents with the Comptroller’s office.
  • Step 2: Wind up internal affairs, such as settling all liabilities, transferring remaining assets, and notifying employees.
  • Step 3: Notify creditors of the intent to terminate the business.
  • Step 4: File final tax returns with the state of Texas and the IRS.
  • Step 5: Vote to dissolve the business with at least a two-thirds majority of shareholders, or the percentage stated in the company’s Articles of Incorporation.
  • Step 6: File the Certificate of Termination with the Texas Secretary of State.

When closing a small business in Texas, it’s important to follow the steps outlined above to ensure that all legal requirements are met and that the business is closed properly. If all of the necessary steps are not followed, then the business may still be liable for debts or other obligations.

Closing a small business in Texas can be a difficult process, but it doesn’t have to be. For more information about how to close a small business in Texas, as well as answers to all of your questions about selling a business and business brokers, be sure to visit atlantabusinesses.com.

What is the fee to shut down a business in Texas?

The fee to terminate a corporation or limited liability company in Texas is $40.

How should a business be shut down correctly?

1
Submit the required documents for an official closure.
2
Attend to the needs of your staff.
3
Settle any taxes due.
4
Inform any contractors of payment.
5
Terminate your Employer Identification Number and cease your IRS business profile.
6
Preserve all paperwork.

What is the process for terminating my Texas sales and use tax permit?

You can inform the Comptroller’s office that you are terminating your account by submitting the details on the Close Business Location webpage and choosing the option of “Close all outlets for this taxpayer number”.

What is the fee for terminating an LLC in Texas?

The Secretary of State requires a $40 payment when dissolving an LLC. If you are using the website, you can pay with a credit card or other payment method when you submit the forms. If you are paying with a check, make it out to the Secretary of State. If you need to pay with a credit card via fax, also attach Form 807.