Although closing a business is never an easy choice, there are instances when it is the best one for the owner. There are various actions you must follow in order to properly close your firm if you are a business owner in Tennessee. We’ll discuss how to wind up a business in Tennessee in this post, including how to wind up an LLC and a sole proprietorship.
Notify the State of Tennessee in Step 1
Notifying the state is the first step in closing a business in Tennessee. Articles of Dissolution must be submitted to the Tennessee Secretary of State’s office. The Tennessee Secretary of State’s website has the Articles of Dissolution form. You must include the name of your company, the cause of the dissolution, and the date on which it became effective.
Step 2: Submit Your Final Tax Returns You must submit your final tax returns to the Tennessee Department of Revenue after alerting the state. This includes any other applicable tax returns, as well as sales tax returns, franchise tax returns, and excise tax returns. You’ll also be responsible for paying any unpaid taxes.
Step 3: Removing business permits and licenses The next step is to terminate any business licenses and permits you currently hold with the state of Tennessee. This could be a liquor license, a business license, a sales tax permit, or any other licenses or permits your company has.
Step 4: Inform Staff, Customers, and Vendors Finally, you must inform your company’s clients, suppliers, and staff of the closure. This could involve informing clients and suppliers via letter or email and organizing a meeting with staff to discuss the closure. How to Terminate an LLC in Tennessee
In Tennessee, closing an LLC is done in the same way as shutting a business is done. You must notify staff, clients, and suppliers of the closure as well as submit Articles of Dissolution with the Tennessee Secretary of State’s office, file final tax returns with the Tennessee Department of Revenue, and cancel any company licenses and permits. How to Terminate a Tennessee Sole Proprietorship
In Tennessee, dissolving a sole proprietorship is a little easier than dissolving an LLC or another kind of company. You must notify your staff, clients, and vendors of the closure as well as revoke any business licenses and permits issued by the state of Tennessee. You must also file your last tax returns with the Tennessee Department of Revenue.
A tax clearance letter from the Tennessee Department of Revenue may be required if you’re shutting a business in Tennessee. This letter serves as proof that you’ve paid all state taxes that are still owing. You must submit your final tax returns and settle any unpaid taxes before you can get a tax clearance letter. A tax clearance letter will be issued by the Department of Revenue when they have processed your returns and payments. How to Terminate an LLC
The procedure for dissolving an LLC in Tennessee is the same as for closing one. This include notifying staff, clients, and vendors of the closure as well as submitting articles of dissolution to the Tennessee Secretary of State’s office and final tax returns to the Tennessee Department of Revenue.