Closing a Business Checklist

Get Help from Professionals

These experts can help you avoid costly mistakes:

• Attorney
  Explains legal rules and protects your business.
• Certified Public Accountant (CPA)
  Manages tax and financial matters.
• Business consultant
  Advises on how to close your business.
• Banker
  Helps with business accounts and loans.
• IRS representative
  Explains federal tax obligations.

Here are the steps you need to follow to close your business in Maryland:

Step 1 1. Cancel Your Business with the Maryland Department of Assessments and Taxation (Dissolution)

You must officially cancel your business with the state of Maryland. Choose the option that matches your business type:

• LLC or Corporation: Cancel your LLC or corporation with Maryland SDAT
• Trade Name: Cancel your trade name with Maryland SDAT

Important: Corporation Requirements
If you have a corporation, it must be in Good Standing before you can close your business. This means:

• All required reports are filed.
• All fees are paid.
• There are no issues with the state.

Check your corporation’s status before starting the closing process. You can do this by using the Maryland Business Express entity search to verify your business is listed as active and in good standing.

Step 2 Close Your Business with the Comptroller of Maryland

To close your withholding account
Provide your information (name, phone number, account number, reason for closing, and closing date) and either:

• Call 410-260-7980 or 1-800-638-2937 (Monday–Friday, 8:30 a.m. to 4:30 p.m.) or
• Complete and send the Maryland Employer Withholding - Final Return (Form MW506FR) (scroll down to the Employer Withholding Forms section).

To close your Sales and Use Tax account
Provide your information (name, phone number, account number, reason for closing, and closing date) and either:

• Call 410-260-7980 or 1-800-638-2937 (Monday–Friday, 8:30 a.m. to 4:30 p.m.) or
• Complete and send the Sales and Use Tax Final Return (Form 202FR) (scroll down to the Sales and Use Tax Forms section).

Step 3 Close Your Business with the IRS

You must also close your business with the IRS and the federal government. For details and instructions, visit the IRS Closing a Business Checklist.

Step 4 Close Your Business with Local Agencies

You may also need to close your business with your city or county government. If you registered your business locally, contact your city or county office to find out what steps you need to take to close or cancel your account.

If you hold a business license (like a trader’s or restaurant license), you must contact your local Clerk of the Circuit Court Office to close that license.

Step 5 Close Your License with the Maryland Department of Labor (if applicable)

If you have a license from the Occupational and Professional Licensing Division at the Maryland Department of Labor:

• Find your licensing point of contact
• Email that office asking to surrender or deactivate your license.

Step 6 Close Your Alcohol, Tobacco, or Motor Fuel Accounts (if applicable)

If your business has any of the following permits, licenses, or accounts, you are required to contact the appropriate office to close them:

• Alcohol and Non-retail Tobacco Licenses
  Requests now go to the Alcohol, Tobacco, and Cannabis Commission (ATCC). Licensees can contact atcc.licensing@maryland.gov to learn the next steps.
• Motor Fuel or International Fuel Tax Agreement (IFTA) Account)
  1. An officer, member, or partner must send a signed, written request on letterhead to close the account (include account number).
  2. Mail to: