Sorry to hear your business did not do well. You will need to file your Form 941's for the quarters of 2009 that you paid wages to employee(s). Time is of the essence as large penalties and interest can accrue. Employment taxes are considered a trust fund account, so the IRS
is not very lenient when these taxes are paid late. The tax when withheld from the employee's pay must be paid to the IRS within the established deadlines
. If the tax has not been paid, a late deposit penalty, late filing
penalty, late payment penalty and interest will be added to the amount of tax you owe. The first two quarters of 2009 will be late but you have until 10/31/09 to file your 3rd quarter Form 941 timely. You should download the Form 941 from the www.irs.gov website and make the appropriate payroll tax
deposits for Withholding
and FICA as soon as possible. If you are able to make the deposits electronically, that is the best way to pay IRS. Otherwise, please see IRS Circular E (Pub. 15) for more information.
Also, don't forget to file your Form 940 for 2009 (due 1/31/2010) for FUTA
To close your LLC:
File a document called Articles of Dissolution or Certificate of Dissolution with your state's Department of Revenue or Secretary of State's office. This document is usually available on your state's website, and there is typically a small fee required.
Pay off any debt the LLC owes. This includes paying vendors, employees and any outstanding loans. If there is not enough money to pay off all loans, you should consult an attorney.
Notify all clients and vendors that you will no longer be conducting business.
Return the LLC's cash reserves to the owners. If there is no money left or if there is not enough money to return everyone's investment, you will need to reach an agreement on how the money will be divided. Consult a lawyer, who will assist you in mediation as well as draw up any necessary paperwork.
Notify the IRS that the LLC is no longer in operation by shutting down the Employer Identification Number (EIN) through the IRS website.
Contact the county in which the business is located and cancel your business license. Do not just let it expire because you might be assessed additional fees or taxes even though your business is no longer in operation.
Report the sale of any assets
, buildings, property
or office equipment to the IRS
File your final income tax return(s) (Form 1065 if you are taxed as a partnership
or 1120/1120S if you are taxed as a C-corp/S-corp). When you do so, make sure to mark the box that says "Final Tax Return."
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Edited by J. Michael Knoebel on 10/2/2009 at 12:47 AM EST