Transferring or Exiting Your Business
Transferring or Exiting Your Business

There are a few administrative items that you should complete if you sell, close, or move your business out of New Jersey. Checking off these items will help make sure you don't continue to receive mail or tax renewal documents from various government agencies.

File With the State

If you sell, close, or move your business, you will need to file with the New Jersey Division of Revenue and Enterprise Services to avoid incurring additional costs or obligations moving forward.

File With Your County

If you're closing your business and no longer plan to use your Trade name, you may submit a Statement of Abandonment of Use with the County Clerk.

State Requirements - State Taxes

To indicate that you will no longer be paying State taxes for your business after the current tax year, check the "Final Return" box on your current year tax return, and write "Final" across the top.

Make sure that you won't be conducting business in New Jersey after the tax year, and keep your records on file. All tax returns are subject to audit until the statute of limitation expires.

State Requirements - Dissolving your Business Entity

The process of dissolving a business can be started by visiting the website for the Division of Revenues and Enterprise Services.

Federal Requirements

Internal Revenue Service

When you close or sell your business, you will still need to file an annual return for the year. If you have employees, you will also file final employment tax returns and make federal tax deposits. Additional returns may need to be filed to report capital gains/losses, disposing of business property or other items depending on the nature of your business. The IRS Closing a Business checklist provides more information and the necessary forms.