If you are no longer doing business, you can close your account one of the following ways:
- Online using My DOR, the fastest way to close your account.
- By paper, using the Business Information Change Form.
Note: If you are dissolving a corporation registered to do business in Washington, you must contact the Secretary of State. You’ll need to provide them with a Revenue Clearance Certificate issued by the Department of Revenue.
You can also use a Business Information Change Form if:
- Your business is still open and you want to close a business location only.
- You want to cancel a trade name only.
The information you provide will be shared, if applicable, with the following Washington State programs:
- Business Licensing (Business Licensing Service)
- Unemployment Insurance Account (Employment Security)
- Workers Compensation Insurance Account (Labor & Industries)
After you close your account:
- Complete an excise tax return and pay all taxes owed within 10 days.
- Pay use tax on inventory converted to personal use (if sales tax was not paid).
- Keep your business records for five years.
- Contact other Washington State agencies to close your account with them.
Out-of-state businesses with nexus and making retail sales in this state have a continuing sales tax collection obligation for the following calendar years after the calendar year in which they stop doing business in Washington.
Business and occupation tax applies to sales in Washington up until the end of the calendar year after the calendar year in which they stop doing business in Washington.
Federal Close of Business Requirements
Internal Revenue Services
You must file an annual return with the Internal Revenue Service (IRS) for the year you go out of business. If you have employees, you must file the final employment tax returns, in addition to making final federal tax deposits of these taxes. Consult the IRS Closing a Business Checklist.
Use CalGOLD, our online permit assistance tool, to help in identifying local, state, and federal regulating agencies that you may have obtained permits from to update records and renew your permits with them. Once in CalGOLD, input your city and type of business. If your business is not listed you can select “General Business Information.”
There are typical actions that are taken when closing a business. You must file an annual return for the year you go out of business. If you have employees, you must file the final employment tax returns, in addition to making final federal tax deposits of these taxes. Also attach a statement to your return showing the name of the person keeping the payroll records and the address where those records will be kept.
The annual tax return for a partnership, corporation, S corporation, limited liability company or trust includes check boxes near the top front page just below the entity information. For the tax year in which your business ceases to exist, check the box that indicates this tax return is a final return. If there are Schedule K-1s, repeat the same procedure on the Schedule K-1.
You will also need to file returns to report disposing of business property, reporting the exchange of like-kind property, and/or changing the form of your business. If you do not have a pre-printed envelope in which to send your taxes, refer to the Where To File page for a list of addresses. Below is a list of typical actions to take when closing a business, depending on your type of business structure: