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ContentsForm Your BusinessDevelop an Alternate Name (DBA)Obtain anEmployer Identification Number from the IRSRegister for NJ Tax and Employer Purposes
ContentsFile Your Business Closure With the StateFile Your Business Closure With Your CountyUnderstand Obligations Under the Worker Adjustment and Retraining Notification (WARN) ActUnderstand What State Tax Requirements Exist When ClosingUnderstand What Federal Requirements Exist When Closing
File Your Business Closure 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.
Recent Regulations and Resources
File Your Business Closure 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 to the County Clerk.
Understand Obligations Under the Worker Adjustment and Retraining Notification (WARN) Act
The Worker Adjustment and Retraining Notification (WARN) Act protects workers, their families, and communities by requiring employers to provide notice 60 days in advance of covered plant closings and mass layoffs. This notice must be provided to affected workers or their representatives (e.g., a labor union); to the State dislocated worker unit; and to the appropriate local government unit.
Employers are advised to contact the State’s Employer Accounts division to report their closing and provide an updated phone number to be reached at.
Employers are advised to review their B187-Q reports and check each unemployment benefit payment listed against their previously supplied wage and separation records. These forms may still continue to be sent to the employer after the business closes. They may also be contacted by the State’s Quality Control department to provide information and verify the accuracy of UI claims processed through fax, email or certified mail.
Employers should expect to be contacted by the State’s Unemployment Insurance division if more information is required to adjudicate a worker’s unemployment insurance claim. Additionally, employers should expect notification of any appeals filed by an interested party, and to participate in the appeal hearing.
An employer who violates the WARN provisions by ordering a plant closing or mass layoff without providing appropriate notice is liable to each aggrieved employee for an amount including back pay and benefits for the period of violation, up to 60 days. The employer's liability may be reduced by such items as wages paid by the employer to the employee during the period of the violation and voluntary and unconditional payments made by the employer to the employee. An employer who fails to provide notice as required to a local government unit is subject to a civil penalty not exceeding $500 for each day of violation. This penalty may be avoided if the employer satisfies the liability to each aggrieved employee within 3 weeks after the closing or layoff is ordered by the employer.
Enforcement of WARN requirements is through the United States district courts. Workers, employees' representatives, and local government units may bring individual or class action suits. In any suit, the court, in its discretion, may allow the prevailing party a reasonable attorney's fee as part of the costs.
The U.S. Department of Labor has created a helpful guide to assist employers through this turbulent time. In addition, NJDOL’s Rapid Response staff will also coordinate with the employer to provide on-site information to the workers and employers about employment and retraining services designed to help participants find new jobs.
Understand What State Tax Requirements Exist When Closing
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.
Understand What Federal Requirements Exist When Closing
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.