- Category: Widget
- Published on Wednesday, 15 October 2014 16:15
- Written by Isaac
- Hits: 100
When a Business Owner Moves On
Staten Island commercial bank understands the payday aspect
STATEN ISLAND, N.Y. – Sometimes a small business will shut down when its owner gets an offer of greener pastures, often with a generous salary and paid-for benefits.
Victory State Bank, Staten Island's only community-based business bank, along with loyal customers, regrets the loss of familiar services but understands the owner's good fortune in moving to a more lucrative venue.
Sole proprietorships open and close all over the borough, and the IRS offers a checklist for guidance when a business shuts down.
New York state also has guidelines that vary according to how the business was set up (www.tax.ny.gov), and New York City's Finance Department (www.nyc.gov) lists various kinds of taxes for businesses. Additional requirements apply to licenses.
So there's more to it than locking the doors, inasmuch as going out of business can incur some paperwork.
There are typical actions that are taken when closing a business. The IRS, for one, says an annual return must be filed for the year that the business ended.
If there are employees, final employment tax returns also must be filed. And final federal tax deposits of these taxes will be due. Also the IRS will look for a statement attached to the return showing the name of the person keeping the payroll records and the address where those records will be kept.
The annual tax return for a partnership, corporation, S corporation, limited liability company or trust includes check boxes near the top front page just below the entity information. For the tax year in which a business ceases to exist, a box can be checked to indicate this tax return is a final one.
If there is a Schedule K-1 (Partner's Share of Income), the same procedure needs to be repeated on the Schedule K-1.
Also required are returns to report disposing of business property, reporting the exchange of like-kind property, and/or changing the form of the business.
There are several typical actions to take when closing a business, depending on the type of business structure, and the IRS offers the following checklist:
- Make final federal tax deposits
- File final quarterly or annual employment tax form.
- Issue final wage and withholding information to employees
- Report information from W-2s issued.
- File final tip income and allocated tips information return.
- Report capital gains or losses.
- Report partner's/shareholder's shares.
- File final employee pension/benefit plan.
- Issue payment information to sub-contractors.
- Report information from 1099s issued.
- Report corporate dissolution or liquidation.
- Consider allowing S corporation election to terminate.
- Report business asset sales.
- Report the sale or exchange of property used in the business.
About Victory State Bank
VSB Bancorp, Inc. (OTCQB: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online at www.VictoryStateBank.com.