If you prepared your business plan before starting your business, you would have thought about an "exit strategy" prior to opening your business. Planning how to exit your business is important, too. You want to secure as much gain as possible in the least amount of time possible.

You may decide to sell your business to someone who is interested in it, transfer ownership to a family member, or, in those cases of dire necessity, declare bankruptcy. You may have allowed for other exit plans, such as holding a "going out of business" sale, otherwise known as liquidating. There are a number of other ways to exit. That is why it is recommended to complete a business plan before you start your business.

As in all ventures, there is always paperwork. For the year you go out of business, you will need to file an annual tax return, reporting the disposal of business property, and other actions you will need to take depending on your business structure.

For more information, see SBA's Getting Out of Business Web site.