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
- Closing a GST/HST account
Find out when and how to close your GST/HST account and the ensuing obligations.
- CRA checklist for new small businesses
Use this checklist from the Canada Revenue Agency to help you understand each stage of the lifecycle of your business.
- Closing accounts
When closing your business, remember to complete the required Canada Revenue Agency forms.
Changes to your business
- Changing your business status
Find out what you should do when you make changes to the structure, status or ownership of your business.
- Change of Business InformationOnly Applies to : OntarioSend updated information and other changes to 8 of your most commonly used business accounts using this single point of contact.
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:
- Corporations Canada: Dissolving a corporation
Learn the steps you must take and get the forms you need to obtain approval for the legal termination of your corporation under the Canada Business Corporations Act.
- Start, dissolve and change a corporationOnly Applies to : OntarioLearn about the requirements for starting a corporation, including a not-for-profit, and how you can make changes to your current business.
Find information and financing options for your succession planning:
- Business successionOnly Applies to : QuebecIf you plan to sell or purchase a financially viable business, this fund may be able to help.
- BDC transition financing
If you are retiring or selling your business, you could get a loan to help with the costs of the transition.
- Succession planning
Find the right strategy for selling your business or handing it over to someone else.
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