When the Person Who Died Owned a Business

Managing not just a death but the end — or continuation — of someone's life's work. This page provides an overview. For any business with employees or significant assets, consult a business attorney.

Business accounts after a death are more complex than personal accounts. Employees, vendors, clients, and landlords depend on decisions you make quickly. At the same time, you are a person who has lost someone. The business will not collapse in a day. Get a business attorney first. Then take the next step.

Immediate priorities — first week

Determine the business entity type. This determines who has authority to act:
- Sole proprietorship: the executor of the estate has authority over the business
- LLC or corporation: check the operating agreement or bylaws for succession provisions — there may be a designated successor, a buy-sell agreement, or instructions for dissolution
- Partnership: the partnership agreement governs. The surviving partner(s) may have authority, or the partnership may dissolve automatically upon death
Secure business bank accounts. Notify the bank, same process as personal accounts. Bring the death certificate, your ID, and whatever business authorization documents you have.
If there are employees: They need to be notified immediately. Payroll obligations continue. If payroll is processed through a service (ADP, Gusto, Paychex), contact them.

Business accounts to close or transfer

Business bank accounts (separate from personal accounts)
Business credit cards
Business insurance (general liability, professional liability, workers' comp, property)
Vendor accounts and supplier relationships
Client contracts and ongoing service agreements
Business subscriptions and SaaS tools
Domain registrations and web hosting
Business phone lines
Office or retail lease agreements
Business licenses and permits

Tax obligations

Final business tax returns must be filed for the period up to the date of death
If the business had employees: final payroll tax returns (Form 941) and W-2s for the year must be filed
The business EIN should be closed with the IRS after all tax obligations are met

Consult a CPA or tax attorney. Business tax obligations after a death are complex enough to warrant professional help in almost all cases.

If the business is being continued or sold

A business can be sold as part of the estate settlement or continued by a designated successor if the business entity and agreements allow it. Either path has legal, tax, and liability implications that require an attorney.

If the business is being dissolved

Close all business accounts
Notify vendors, clients, and business contacts
File dissolution paperwork with the state (Articles of Dissolution for LLCs and corporations)
Pay outstanding debts from business assets
Distribute remaining assets per the estate plan
File final tax returns
Cancel the EIN with the IRS

The business will not collapse in a day. Take the first step: get a business attorney. Let them help you carry this.

If you're reading this page, you're managing not just a death but the end — or continuation — of someone's life's work. That carries its own weight. You are still a person who has lost someone. The business matters may feel urgent because other people depend on your decisions. That urgency is real. But you are still allowed to take a breath before you take the next step.