Depending on the business structure, dissolving or closing a business may require notifying the IRS and the state, and filling out dissolution documents. Sole proprietors do not normally need to notify anyone, as long as debts are paid.
If the business owner has unpaid debts, regardless of their structure, they may decide to liquidate their assets. Alternatively, a business owner may need to file for bankruptcy if the business is unable to pay their debts. There are a few different types of bankruptcy options: individuals can file under Chapter 7 or Chapter 13 of the U.S. bankruptcy code; corporations can file under Chapter 11. If planning to file bankruptcy, talk to a lawyer to make the best decisions for your situation.
The following materials link to fuller bibliographic information in the Library of Congress Online Catalog. Links to additional online content are provided when available.
These are freely available online sources provided by government agencies, trade publications, and organizations.