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Closing a Business Entity

When a business entity closes and no longer does business in California they must terminate their legal existence here by dissolving, surrendering, or canceling their business. For complete information, get FTB Publication 1038, Guide to Dissolve, Surrender, or Cancel a Business Entity.

Watch this video Close Business Entity in California (2:21). 

How do I dissolve, surrender, or cancel my business entity?

Requirements for Franchise Tax Board

All business entities must:

  • File the final current year tax return. Check the applicable Final Return box on the first page of the return, and write "final" across the top.
  • Do not conduct business in California after the final taxable year.


All tax returns remain subject to audit until the statute of limitations expires.

Requirements for Entities Registered with the California Secretary of State (SOS)

File the appropriate dissolution, surrender, or cancellation forms with the SOS within 12 months of filing your final tax return. To get the applicable forms, go to the SOS website at, and search for terminate entity, or call 916.657.5448.

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Last Updated: 08.06.2018


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