How to Close a Business in Canada: A Step-by-Step Overview

Closing a business well is mostly about doing things in the right order.

1. Know where you stand

List what the business owns and owes. If debts exceed assets, speak to a licensed insolvency trustee before anything else.

2. Gather your records

Collect the minute book, lease, loan and guarantee documents, employee list and asset list.

3. Plan the sequence

Set deadlines for employee notice, lease exit, supplier notices and CRA filings.

4. Look after your team

Notice and final pay rules differ by province. Have your lawyer check the numbers before anyone is told.

5. Close CRA accounts

Your accountant files final returns and requests a clearance certificate before money goes to shareholders.

6. Settle commitments and pay creditors in the right order

7. Dissolve the corporation

File articles of dissolution and keep your records for the required period.