Closing your business? Avoid becoming personally liable for payroll taxes.
No one wants to close a business - it was your baby, and it's like losing a piece of yourself. But sometimes it's the right time to close., especially if you are in trouble with payroll taxes. The number one thing to do is pay your business's payroll taxes before you close. Otherwise, the IRS will try to tag you as a "responsible person" as and collect the payroll taxes from you personally. If you can liquidate your assets and pay off the payroll taxes before paying your other bills and before paying yourself, you will save yourself from being pursued by the IRS.
The IRS has a new page with tips for possibly saving your business by applying for various Covid relief measures and with a list of steps how to close your business. Follow this list.
Don't forget if you're an Indiana business, you also need to file a notice of dissolution with the Indiana Secretary of State and close your withholding, sales tax and state unemployment accounts.