Virginia Beach Economic Development
Closing or Inactivating a Business
There are a few administrative items you should complete if you sell, close, or move your business out of the City of Virginia Beach. Checking off these items will help make sure you don't continue to receive mail or tax renewal documents from various government agencies.
City Requirements
The Commissioner of the Revenue's office must be notified when a business closes. You will be considered delinquent and statutory assessments will be assessed to your account if you do not notify the office of the closure or sale of your business.
​To inactivate a business license, the notification must be submitted in writing and signed by the owner, a member of the limited liability company, or an officer of the corporation, and it must also indicate the exact out-of-business date.
Federal Requirements
When you close or sell your business, you will still need to file an annual return for the year. If you have employees, you'll also file final employment tax returns and make federal tax deposits.
Additional returns may need to be filed to report capital gains/losses, disposing of business property, or other items depending on the nature of your business.
State Requirements
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State Taxes: ​To indicate that you will no longer be paying state taxes for your business after the current tax year, check the "Final Return" box on your current year tax return, and write "final" across the top. Make sure that you won't be conducting business in Virginia after the tax year and keep your records on file as all tax returns are subject to audit until the statute of limitation expires.
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Dissolving Your Business Entity: If you are a corporation, partnership, or limited liability company that incorporated your business entity with the State Corporation Commission, you may file a certificate of cancellation and/or dissolution, depending on your business type. ​
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