DRS: Closing a Business

 
Closing or Ending a Business in Connecticut

If you are closing your Connecticut business or if your out-of-state business will no longer be conducting business in Connecticut or if you are no longer subject to one for which you are registered,  you can log into the Taxpayer Service Center (TSC-BUS) and click "Close Business or Tax Types" under Business Profile on the left toolbar. 

If you do not have Internet access, you must follow the directions below to notify the Department of Revenue Services. 

      1. Sales and Use Taxes
      2. Corporation Business Tax
      3. Withholding Tax
      4. Business Entity Tax
      5. Insurance Premium and Health Care Center Taxes

If the business holds a Sales and Use Tax Permit, and will no longer be making sales, you must follow these steps to cancel the Sales and Use Tax Permit:

  • File a final sales and use tax return (Form OS-114).  Complete all parts of the return, including the bottom of the front page of the return that asks for the last date of business and sign the return.

  • Write the word "FINAL" prominently across the top of the return (OS-114)

  • Fill out the back of the Sales and Use Tax Permit (blue card) and enclose it with the final return

  • Mail your final return and permit card to the address on the form.


 
You may not close the corporation business tax account until you dissolve (if a domestic corporation) or withdraw (if a foreign corporation) with the Connecticut Secretary of the State.  You may download the appropriate forms for dissolution or withdrawal on the Secretary of the State's Website or contact the Office of the Secretary of the State for information and forms at 860-509-6000.
 

After you dissolve or withdraw with the Secretary of the State, notify DRS and we will close the corporation business tax account.  Send a copy of the dissolution or withdrawal papers or a letter with the date of dissolution or withdrawal and include the following information:

  • the name of the organization
  • its Connecticut tax registration number
  • your name and your relationship to the organization; and
  • your daytime phone number.
Mail to: 
Registration Maintenance Unit
Department of Revenue Services
P.O. Box 2937
Hartford, CT 06104-2937
 

Remember, you are required to file a final Form CT-1120, Connecticut Corporation Business Tax Return. The corporation business tax applies to any year or part of a year when the corporation was in existence.


Closing Withholding Tax

If an employer goes out of business or permanently stops paying wages, the employer should notify DRS immediately by filing Form CT-941, Connecticut Quarterly Reconciliation of Withholding, for the current quarter. The employer should check the box indicating that the employer no longer has employees and enter the last payroll date on the line provided on Form CT-941 or send written notification to:

 

Department of Revenue Services
Registration Unit
PO Box 2937
Hartford CT 06104-2937

An employer must also file Form CT-W3, Connecticut Annual Reconciliation of Withholding, issue Forms W-2 to all employees showing their wages and withholding, and submit copies of all Forms W-2 to the Department of Revenue Services.

If the business had employees, you must also cancel its registration with the Connecticut Department of Labor.


Closing Business Entity Tax

You may not close the business entity tax account until you dissolve (if a domestic S corporation, limited liability company, limited liability partnership or limited partnership) or withdraw (if a foreign S corporation, limited liability company, limited liability partnership or limited partnership) with the Connecticut Secretary of the State.  You may download the appropriate forms for dissolution or withdrawal on the Secretary of the State's Website

After you dissolve or withdraw with the Secretary of the State, notify DRS and we will close the business entity tax account.  Send a copy of the dissolution or withdrawal papers or a letter with the date of dissolution or withdrawal and include the following information:

  • the name of the organization
  • its Connecticut tax registration number
  • your name and your relationship to the organization; and
  • your daytime phone number.  
 
Mail to:
Registration Maintenance Unit
Department of Revenue Services
P.O. Box 2937
Hartford, CT 06104-2937
  

Remember, you are required to file a final Form OP-424, Business Entity Tax Return. The business entity tax applies to any year or part of a year when the organization was in existence.  You are also required to file a final Form CT-1065/CT-1120SI, Composite Income Tax Return.  For detailed information on filing requirements visit the webpage for either:


Closing Insurance Premiums Tax and Health Care Center Taxes (Domestic and Foreign Insurance Companies)

 

Insurance companies wishing to inactivate their DRS tax registration (go out of business) for the Connecticut Insurance Premiums Tax or Health Care Center Tax must contact the Connecticut Insurance Department at 860-297-3814.  Once verified and approved, the Connecticut Insurance Department will forward the information directly to DRS to be used to inactivate the tax registration of the insurance company or health care center.  DRS will not accept a request to cancel a tax registration for the Insurance Premiums Tax or Health Care Center Tax directly from the insurance company.