The short answer
File a final federal return for the business and check the "final return" box, file final payroll returns and W-2s if you had employees, close your Florida sales tax and reemployment tax accounts, dissolve the LLC or corporation on Sunbiz, and keep your records for at least three years (longer for payroll and property).
Last reviewed: October 2026
Federal returns
- Sole proprietor or one-owner LLC: report the final year on Schedule C with your personal return. Nothing extra to file.
- Partnership or multi-owner LLC: file a final Form 1065 and check the "final return" box. Send each owner a final K-1.
- S corporation: file a final Form 1120-S and check the "final return" box.
- Corporations: also file Form 966 within 30 days after deciding to dissolve.
- Sold equipment, vehicles or property? Report it on Form 4797. Some of what you deducted may be taxed back. See depreciation recapture.
If you had employees
- Pay final wages and deposit the last payroll taxes.
- File your final Form 941 and check the box saying you've stopped paying wages, plus a final Form 940.
- Give employees their W-2s and send them to the Social Security Administration. When you close, these are due sooner than January 31; see the IRS checklist below.
- Send 1099-NECs to contractors you paid $2,000 or more.
Florida steps
- File your final sales tax return and close the account with the Florida Department of Revenue. An open account keeps expecting returns, even with zero sales.
- Close your reemployment tax account after the final quarter's report.
- Dissolve the LLC or corporation on Sunbiz ($25 for an LLC, $35 for a corporation). If you just stop filing the annual report, the state dissolves you administratively, which looks worse and can be messier to clean up later.
- Cancel your local business tax receipt and any licenses.
The EIN
An EIN is never reused or truly canceled, but you can ask the IRS to close your business account once all returns are filed and taxes are paid. Send a letter with the business name, EIN, address and reason for closing.
Keep your records
Keep tax records at least three years after the final return, employment tax records at least four years, and records on property you sold until the period for that year runs out. See how long to keep tax records.
Official checklist: IRS: Closing a business.
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More for business owners
- Starting a business in Florida
- Should I elect S corporation status?
- Hiring your first employee
- Closing a business
- Selling a business
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Disclaimer: This page is general information, not tax or legal advice. Every situation is different, and tax rules change. Reading this page doesn't make you a client.