The commissioner's office must be notified when a business closes. ​To inactivate a business license, notification must be submitted in writing.  The notification must be signed by the owner of the business, a member of the Limited Liability Company or officer of the Corporation and it must also indicate the exact out-of-business date.  The Out of​ Business Form​ may be submitted to satisfy the criteria.

​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.

Virginia Department of Taxation

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. ​

​Internal Revenue Service

When you close or sell your business, you will still need to file an annual return for the year. If you have employees, you will 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. The IRS Closing a Business Checklist​ provides more information and the necessary forms. ​