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Starting a business is not a particularly difficult process compared to running one. If the time has come to close a business, many of the same details need attention. For any business needs involving Ohio state law, business owners and managers owe it to themselves to be prepared.

What are the tax responsibilities to the owners of a closing business in Ohio?

Any for-profit corporation in Ohio has required a Certificate of Tax Clearance from the state’s Department of Taxation if it closed since September 2013. There used to be an exception that allowed businesses in some circumstances to submit an affidavit instead of the certificate, but that is no longer possible.

How do business owners meet that responsibility?

A business can only get the Certificate of Tax Clearance once they have sent the Ohio Department of State a form notifying the government of their intention to dissolve or surrender the corporation. Any outstanding tax liabilities or corporate filings must be handled before the certificate is issued.

What are the taxes that may need to be settled?

Businesses with vendor’s licenses will need to file their final sales tax returns. Any vendor with an Ohio liquor license will need to transfer or close the license before the tax clearance is issued. The Ohio Secretary of State may assist with other required reports.

How can a lawyer help with this process?

An attorney may help identify all the required taxes and other necessities to properly close a business. Legal representation may be helpful in other business areas, such as starting or transferring a company.

Source: Ohio Department of Taxation, “Closing a Business with the Ohio Department of Taxation,” accessed June 01, 2018