Closing a business

Jump to section:

1. Business exit strategies
2. Checklist for closing a business
3. Public resources for exiting your business
4. Regulatory agencies to notify: City of Seattle
5. Regulatory agencies to notify: county, state, and federal

Business exit strategies

• There are several different ways to exit your business. Depending on your circumstances, your strategy may include:
  • Keeping the business in the family
  • Creating a worker-owned cooperative or employee stock ownership plan
  • Selling the business on the open market
  • Selling the business to another business (acquisition)
  • Merger
  • Liquidation
  • Filing for bankruptcy
• The strategy you choose will determine the steps you will need to take to exit your business.

Checklist for closing a business

• Seek legal advice: Make sure you understand how to close your business. This includes dealing with debts, contracts, notifications, and any rules you have to follow. Knowing these requirements will help you plan your next steps.
  • We offer free counseling and legal workshops through the Small Business Legal Assistance Program.
• Notify regulatory agencies: Contact all government agencies that issued your permits and licenses to make sure your accounts are closed or transferred correctly.
  • Federal
  • State
  • County (or counties, if you have multiple permits in different counties)
  • City (or cities, if you have multiple business licenses in different cities)
• Notify other interested parties: Reach out to relevant people and partners, ensuring payment or communicating how and when you will pay for any monies due.
  • Customers
  • Employees
  • Insurers
  • Landlords
  • Lenders
  • Service providers
  • Vendors
• Closure of business due to death: These state agencies have a special process for a business to follow when closing due to death:
  • Department of Labor and Industries
  • Department of Licensing
  • Department of Revenue: Business Licensing Services Taxes
  • Employment Security Department
  • Liquor and Cannabis Board
  • Secretary of State

Public resources for exiting your business

• Succession planning toolkit: We created a Succession Planning Toolkit that includes key questions and information to consider for your exit plan, a summary of information about business entities and estate planning, and a worksheet to help you organize the closing process.
• State of Washington’s Close Your Business Guide: The state’s Close Your Business Guide provides several business development resources, including information and resources on how to close your business.
• Internal Revenue Service: The IRS has a list of resources that can help you navigate closing your business from a federal tax perspective, regardless of your business type, and information to help you take care of your employees.
• U.S. Small Business Administration: The SBA can connect you with local guidance to plan your exit strategy as well as providing steps to close or sell your business.

Regulatory agencies to notify: City of Seattle

• Seattle City Light: Notify City Light if you have any questions about your account. You can start, stop, or transfer your SCL account via online form or by phone at (206) 684-3000.
• Seattle Department of Transportation: If you have any permits for a public place cafe, public amenities, or similar structures, email SDOT at publicspace@seattle.gov with the dates of the anticipated closure, the address of your business, and your permit numbers. They will follow up with you to ensure your old permit billing is discontinued.
• Seattle Fire Department: If you have annual permits from SFD and plan on closing your business or suspending operations, send any cancellation requests by email at permits@seattle.gov.
  • Include the following information in the email:
    • Business name
    • Permit number or permit type
    • The reason for cancellation
  • You can also cancel by responding to the permit renewal notice that SFD sends about one month before the permit expires. Just check the “Cancel” box on the form. You can send the renewal notice back to SFD by email or regular mail.
• Seattle License and Tax Administration: If you no longer do business in Seattle and need to cancel your business license tax certificate, notify the License and Tax Administration via their online form. You can also email (tax@seattle.gov) or send them a letter with the following information: name, phone number, customer number, legal name of the business, and date the business closed. You must file your final tax return and pay any outstanding taxes within 10 days of closing your account.
• Seattle Office of Labor Standards
  • Full list of Ordinances.
  • Cannabis Employee Job Retention Ordinance: If a cannabis business changes owners, employees have protections to help them keep their jobs.
  • Paid Sick and Safe Time Ordinance (SMC 14.16): When a business is taken over by a new employer, employees keep all the paid sick and safe time they already earned. The new owner must follow the paid sick and safe time rules right away. They are not treated as a “new employer” under this law.
  • Hotel Employees Job Retention Ordinance (SMC 14.29):
    • The law requires:
      • The current (outgoing) owner to give written notice that the business will have a new owner.
      • Within five business days after the ownership transfer paperwork is signed, the outgoing owner must post the notice where employees and job applicants can easily see it.
      • The outgoing owner must also give the new (incoming) owner a list of employees who should be offered jobs first.
      • For the first 180 days after opening to the public under the incoming owner, the incoming owner must offer jobs to people on that list before hiring anyone else.
• Seattle Public Utilities: Notify SPU if you have any questions about your water, drainage and wastewater, and solid waste services. You can open, close, or move your SPU accounts via their online form or by phone at (206) 684-3000.

Regulatory agencies to notify: county, state, and federal

• County
  • Public Health, Seattle and King County: If you are a retail food business, notify the King County Health Department by letting your assigned health inspector know that you will be closing the business. Your health inspector will verify the closure to close it out. If you don’t know who your health inspector is, call (206) 263-9566 to speak with office staff.
• State
  • Employment Security Department
  • Department of Labor and Industries
  • Liquor and Cannabis Board
  • Secretary of State
  • State-certified business agencies (if you are state-certified with the Office of Minority and Women’s Business Enterprises and/or the Department of Veteran Affairs)
  • Washington Department of Agriculture (if you have any annual permits or licenses, such as the food processor license or cottage food permit)
  • Washington Department of Licensing
  • Washington Department of Revenue
  • Washington State Department of Commerce
• Federal
  • Internal Revenue Service
  • U.S. Small Business Administration
    • Small Business Administration's Seattle office