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What are the legal steps for closing a business?

When you formed your business in Connecticut, you likely followed several steps to create a legal entity, acquire funding and build a client base. If you decide to close your business, you may think that all you need to do is stop making sales and earning money. However, there are legal procedures related to closing a business that you must follow.

According to the Connecticut Secretary of State, the law does not automatically recognize a business closure because that business stops making money. Additionally, you may not simply stop making business-related filings as a way to indicate closure. There are very specific steps to follow to dissolve your business and avoid further taxes and potential legal liabilities.

Fortunately, you do not have to pay any transaction fees to dissolve your business. You may file the paperwork through the state’s online system. In order to file all the correct dissolution paperwork, you may need to create an account in the online filing system or sign in with your existing account information. Once you have access to your account, you must navigate to your business’ entry and selection the option to file a Certificate of Dissolution. If you do not provide a date for the dissolution to take effect, it will default to become effective upon filing.

The state of Connecticut does not require you to do anything else to dissolve your business. You do not need to wait for an official review or file any additional annual reports.