Closing a business
Closing a business in New Jersey, step by step
Closing the doors doesn't close the business. Until the State and the IRS see the right final filings, they keep expecting returns, and the penalties keep coming. Here's the order to do it in.
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New Jersey filings
- Get annual reports current first. The State won't close an entity that's behind.
- LLC: file the Certificate of Cancellation online through the State's Business Endings service: $100 for a New Jersey LLC. LLCs don't need tax clearance. (NJ Revenue, fees)
- Corporation: dissolution is $75, and a Tax Clearance Certificate is required first.
- Sales tax: file a final return, even if it shows nothing due.
- Payroll: file the final NJ-927 (or NJ-927-W or NJ-927-H) and WR-30, even if zero, and tell Employer Accounts you've closed.
- Close your tax registration with Form REG-C-L, giving the date the business ended. (NJ Taxation)
Federal filings
- Final income tax return marked final: Schedule C, Form 1065 with final K-1s, or Form 1120 or 1120-S (corporations also file Form 966).
- Final Form 941 with the closed box and last wage date; final Form 940 with box d checked; W-2s and the W-3.
- 1099-NECs to contractors you paid $2,000 or more in 2026.
- When everything's filed and paid, close the EIN by letter to the IRS. (IRS)
Keep records
Generally 3 years for tax records, at least 4 years for employment tax records, and longer for property and some deductions. (IRS)
Where we come in
We do the final books, payroll returns, 1099s and the paperwork run for a flat fee, and hand your accountant a clean final-year package. The bookkeeping steps · Final payroll · Catch-up bookkeeping
Printable kit
Closing a Business in New Jersey Kit
A closing checklist in order, a final returns tracker, letters to customers, vendors and your landlord, a records retention schedule and a final payroll checklist.
General information, checked November 2026. Not legal advice. MCC Solutions is not a law firm.
Questions
How much does it cost to dissolve an LLC in New Jersey?
The Certificate of Cancellation is $100 for a New Jersey LLC, filed online. LLCs don't need a tax clearance certificate.
Do I need tax clearance to close my NJ business?
Corporations do before dissolving. LLCs, LPs, LLPs and nonprofits don't.
Do I have to file a final sales tax return if I had no sales?
Yes. New Jersey wants a final return even if nothing is due, and a final payroll return too if you had employees.
How do I close my EIN?
After all returns are filed and taxes paid, send the IRS a letter with the business's legal name, EIN, address and the reason you're closing it.
Tallyfinch
Books you keep on your own computer
Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.
See Tallyfinch Download it free Compare the three apps