Skip to main content

Update, Expand, or Close a Business

Close a Business

When you close or sell your business, be sure to close your business tax account with the Vermont Department of Taxes. Otherwise, the Department may think you are still in business but not filing returns. The Department may then bill you for unpaid taxes.

Pay Taxes Owed and File Returns Due

Before closing your account, be sure to pay any remaining taxes and file all returns due to the Department. If you have employees, it is important to file a final Form WHT-434, Annual Withholding Reconciliation, with forms W-2 and/or 1099 as required, or file using your myVTax account. You must file within 30 days of closing your withholding account.

Selling your Business or Assets

If you are selling your business, or selling the assets of a closed business, the buyer may ask for a Notice of Escrow from the Department of Taxes. This is also called a tax certificate or clearance. This notice provides information to the buyer about what taxes are due for which the buyer might become responsible. Please pay all taxes due up to the closing date.

For more information, please see Vermont law at 32 V.S.A. § 3260 or contact the Department.

How to Close Your Business Tax Account

The easiest way to close your business tax account online is to log in to your myVTax account at and select Close Account. If you have more than one type of business tax account, you must close each individually.

If you do not have a myVTax account, you may file on a paper form using Form B-2, Notice of Change.

We also recommend notifying the Vermont Secretary of State that you are closing your business.

Expand a Business

Is your business growing? If you plan on hiring additional employees to work in your business, you must withhold Vermont state income tax from each employee’s paycheck and remit the tax to the Vermont Department of Taxes.

Learn more about hiring employees and calculating withholding tax.

Update a Business

The best way to update information for your business (name on account, address, etc.) is to open a myVTax account online and make changes to your account. Otherwise, request changes by completing Form B-2, Notice of Change. We may request supporting documents.

Renew a Business Registration

The Secretary of State has regular renewal requirements. To learn more, please visit their Online Business Service Center. Please note: You do not have to renew your business tax account with the Department of Taxes.