To make sure that all financial responsibilities are completed while closing a company bank account, great attention to detail is necessary. What you need to know if you’re closing a business bank account is listed below.
1. Inform Your Bank
Notifying your bank is the first step in closing a business bank account. You must inform your bank in writing of your intention to close the account. The account number, the date you want to cancel the account, and the explanation for the closure should all be included in this notice.
You must confirm that all transactions have cleared before closing your business bank account. This includes any unpaid automatic payments, checks, and recurring fees. Before terminating the account, make sure you give all transactions ample time to clear.
3. Remit All Fees You must settle all due fees before closing your business bank account. This includes any overdraft costs, transaction fees, and monthly maintenance expenses. Make careful to verify that all costs have been paid by reviewing your account statement. 4. Stop all recurring payments automatically
The last step is to stop any associated automated payments after notifying your bank and clearing any transactions and costs. This covers payments for rent, utilities, and other ongoing costs. The payee must be informed of your changed payment method.
How to Terminate Your Sales Tax Account in Louisiana
You might also need to close your Louisiana sales tax account if you’re closing your business bank account. To do this, you must send a written request to revoke your sales tax registration to the Louisiana Department of Revenue (LDR). Additionally, you must submit all unfiled sales tax reports and settle any unpaid tax debts. What Services in Louisiana Are Not Taxable?
Educational services like tutoring, exam prep, and music lessons are also included.
– Non-profit institutions like churches and charities.
– Healthcare services including doctor visits and dental work.
You must apply for tax-exempt status with the LDR in order to get exempt from paying taxes in Louisiana. Usually, this entails registering as a non-profit organization and fulfilling certain criteria. Once approved, some purchases and transactions made by your company won’t be subject to sales tax.