Canceling or dissolving a business

1. Dissolution of Corporation (Ontario or Federal)

Ontario Corporations:
Filing dissolution documents with the Ontario Business Registry to formally end a corporation’s existence.
Federal Corporations:
Filing dissolution with Corporations Canada to officially close a federally incorporated business.

2. Voluntary Dissolution

Corporations: If the shareholders or directors decide to voluntarily dissolve the corporation, they must file appropriate documents and resolve any outstanding tax or legal matters.
Partnerships: Filing a dissolution agreement and notifying partners and authorities of the decision to dissolve the partnership.

3. Business Name Cancellation

Sole Proprietorship or Partnership: Canceling a trade name or “doing business as” (DBA) registration with the Ontario Business Registry or CRA.

4. Notice of Dissolution

Filing a formal notice to the relevant government authorities (Ontario or federal) to inform them that the business has been dissolved.

5. Winding-Up Process

Ensuring the proper winding-up process for the company, including settling debts, distributing assets, and notifying creditors.

6. Canceling Business Registration with CRA

Cancelling your Business Number (BN), GST/HST, payroll, and other CRA accounts associated with the business.

7. Settling Corporate Debts

Before dissolution, settling any outstanding debts with creditors, which may require obtaining tax clearance certificates or legal documentation.

8. Filing Articles of Dissolution

For corporations, filing Articles of Dissolution with the Ontario Business Registry or Corporations Canada, depending on the type of incorporation.

9. Tax Clearance Certificate

Obtaining a tax clearance certificate from the Canada Revenue Agency (CRA), which confirms that all taxes owed by the business have been paid before dissolution.

10. Closing Accounts and Canceling Licenses

Ensuring all business accounts are closed, including HST, payroll, and corporate accounts. Also, cancel any business licenses or permits.

11. Cancellation of Employee Benefits and Pension Plans

If applicable, managing the cancellation of employee benefits, pension plans, and related financial matters.

12. Removal from Ontario Business Registry

Ensuring the business is officially removed from the Ontario Business Registry after dissolution, to avoid any future obligations or fees.

13. Ceasing to File Corporate Returns

Stopping the requirement to file annual corporate returns once the business is officially dissolved.

14. Shareholder Approval for Dissolution

For corporations, ensuring that shareholder approval is obtained and documented prior to filing for dissolution.

15. Resolving Outstanding Legal Issues

Addressing any legal disputes or ongoing litigation before dissolution to prevent issues after the business has been canceled.