Closing your business
If you are planning to close your business, there are a few things you should consider, such as notifying Canada Revenue Agency (CRA), filing a final tax return, paying any outstanding tax amounts, and financing your succession planning.
Legal and financial obligations
When you decide to close your business (a sole proprietorship, a partnership, or a corporation) and no longer need your business number (BN), you have to complete certain forms before the account can be closed.
Here is a list of things you should do if you are planning to close a business:
- Cancel your business registration for your sole proprietorship or partnership OR
- Voluntarily dissolve your corporation
- File a last tax return, if you have dissolved a corporation
- Close your RST/PST/QST accounts with the appropriate provincial agency
- Close your payroll accounts with the Canada Revenue Agency (CRA)
- Close your GST/HST accounts with CRA
Changes to your business
Dissolving a corporation
Dissolving your corporation is the legal act of ending its existence. Regardless of the jurisdiction in which your business is incorporated, when the time comes to dissolve your corporation there are several factors to consider. In the same way you undertake certain formal procedures to create a corporation, you must file forms with the appropriate governments to dissolve it.
Before filing articles of dissolution, you may need to:
- Confirm that you have the authority to dissolve the business
- File all applicable tax forms
- Ensure the corporation is in good standing
- Distribute remaining assets, property or liabilities
Other conditions may apply. Follow the guidelines set by your corporation's registrar if you are planning to dissolve the business:
Find information and financing options for your succession planning: