How To Wind Up Your Business
There are several reasons you might choose to close your business. The market might not be quite right for your venture, or you might have decided to move on to a new and exciting opportunity. Regardless of why you’ve chosen to wind up your business, there are some necessary steps to take.
You’ll need to be prudent when dissolving your business – ensuring you’ve taken the appropriate measures will make this a smooth transition. It’s important to note that if your business is a corporation, you will need to confirm that you have the authority to dissolve the business.
Here are some tips to help you during this process:
Contact our team
When cancelling your business registration, you’ll need to file for a cancellation with the Ontario Government. You’ll be required to provide the same information as when you first registered your business including the business name, the business type and activity, the authorizing person and BIN (bank insurance number). Once your original registration has reached its expiry date – Ontario business registration is valid for five years – your business will be listed as inactive.
We provide cancellation services online. Simply enter the requested information into our existing business cancellation form and proceed with your cancellation.
Wind up at the right time
If your business is a sole proprietorship, you’re responsible for all the debts incurred. Although it’s difficult to walk away when your business is still in the black, one way of overcoming a potential problem is to make sure the business’ assets always outweigh its debts.
Notify the appropriate agencies
After you’ve informed staff and/or colleagues, it’s important to contact the Canada Revenue Agency (CRA) to file a final tax return and pay any outstanding taxes.
Close Payroll and HST/GST accounts with the CRA – you’ll have to use the appropriate CRA forms to accomplish this. If a business owner has debt obligations to the CRA, the CRA can directly contact clients for payment options. Clients are no longer obligated to pay the business, but instead, they pay the government on behalf of the business.
As a business owner, the best thing you can do after you’ve decided to dissolve your business is to ensure you’ve taken all the necessary steps. If you’re unsure about how to proceed in the dissolution process, contact our team at Ontario Business Central. We offer same day cancellation and 24-hour preparation for incorporated companies and Ontario registered businesses.