State Unemployment Tax (SUTA)

When you close your business, in addition to filing your final federal tax returns and paying any taxes due, you may also have state taxes to deal with.

If you had employees, a state unemployment tax return is generally filed quarterly.

Check your return to see if it provides a place to enter business termination information.

Sales Tax

Generally, sales tax returns have a box where you place a checkmark if it's your final return and to have your sales tax permit canceled.

Some states don't have a sales tax.

For example:

  • Alaska
  • Delaware
  • Montana
  • New Hampshire
  • Oregon

Tax laws change frequently, even at the state level. Check your state for the most current information.

State Employment Taxes

If you file state employment tax returns to report state withholding taxes, check to see if these forms provide a section to enter business termination information.

Check with your state's department of revenue and unemployment office for their tax filing requirements when a business is closed.

QuickBooks Self-Employed
For Freelancers and independent Contractors

- Organize your financial data into one central accounting system on the cloud
- Software kept up to date.
- Your data kept secure
- Anytime, anywhere data access.
- Pay your quarterly estimated taxes online.
- Export Schedule C to TurboTax at year-end for faster filing.
- Save up to 50% off QuickBooks Self-Employed. Track every deduction! Start your free trial now!

Have an accounting or bookkeeping question? Email it to me.