Why and when do you need to deregister in a state?
Deregistering your business in a state can be done for the following reasons:
- You are no longer doing business in the state
- You have no active employees in the state
- You have sold your business
- You are dissolving your business
As with any state process, there are a few aspects to consider when thinking about deregistering in a state. The main considerations are: do you plan to start doing business again or hire another employee out of that state?
If the answer is yes to either of those questions, it is worth considering leaving the state accounts active and filing a zero return. While this will require some time and effort upfront, it could save you time and money in the long run.
Some states have higher costs associated with the registration, while others have 4+ week turnaround times. This means you'll be waiting for the state to process your application and registration before you will be fully complaint in that state.
If the answer is no, you are likely better off deregistering from that state. Each state has different requirements for deregistering and we are here to help.
Looking for how to request a deregistration on AbstractOps? Check out this article.