I’ve sold my property or will no longer be renting it. Is there anything I need to do?
The answer is yes, and we are glad that you asked. We don't hear this question enough, and this is one area where people make costly assumptions! At a minimum, you must cancel your basic business license and business tax registration. You might also have to dissolve your Business Entity Registration. This option is explained in detail in the next to last paragraph.
Basic Business License
It is important to make sure you cancel your license before its expiration date. Otherwise the District will impose a $250 penalty the day after your license expires. What’s more, if the license remains expired for 30 days, an additional penalty of $250 is imposed. Insult to injury – Additional penalties can be imposed if your license remains in lapsed status! As a reminder, your business license is tied to your Social Security number or to your Employer Identification Number depending on the ownership type of the license holder. That means the D.C. government can garnish your tax refunds or send you to a collection agency.
Canceling your license is not difficult and it can easily be done online. Please refer to the article How to Cancel My DC Rental Property License for detailed instructions on canceling your license.
Business Tax Registration
As part of obtaining your rental housing license, you had to open a business tax account with the Office of Tax and Revenue. Now you must closed this account. Otherwise the Taxing Authority will be wondering why it’s still open. To close your account, you must file a final tax return, whether you owe income taxes or not. Speak with your tax professional who can prepare and file your return. Alternatively, you can call the Business Tax Division (202-727-4829), Office of Tax and Revenue, for more information.
Business Entity Registration
If your rental property is owned by a business entity such as an LLC or a Corporation, and you will no longer be operating the business, then you need to file Articles of Dissolution with the DCRA’s Corporations Division. Speak with your legal counsel so they can advise you on whether your business should be dissolved at this time, or if you have legal obligations to keep the business registration open. Just because you are no longer renting, that doesn’t mean you can always close the business.
RentJiffy Registered Agent Service
If you have registered agent services with RentJiffy, then you must also close your agent account with us. Please review our support article How Do I Cancel My Registered Agent Services with RentJiffy? for complete information.