What should you do with company data when closing a business?

Updated October 25, 2026 · How we research

Why does the order of shutdown steps matter?

Most cloud tools do not keep your data forever once you stop paying. Google's help pages warn that cancelling Google Workspace deletes users' data and that it cannot be restored, and they advise downloading anything you want to keep first. Microsoft describes a staged process for Microsoft 365 business subscriptions: for most plans, about 30 days expired, then about 90 days disabled, then deleted, with some plans skipping stages (as of October 2026).

This means a shutdown that cancels accounts first and thinks about records later can destroy something the company may still need. That includes records you must keep for taxes and legal claims, and records that could have value if licensed.

What should you preserve before cancelling accounts?

A simple rule: export first, cancel second. Make a list of every system the company used and confirm an export exists for each before anyone closes it.

• Email and calendars (for example Google Workspace or Microsoft 365)
• Chat history (Slack, Microsoft Teams)
• Shared documents and drives
• CRM, support tickets and project tools
• Accounting and finance records
• Code repositories, if you built software
• Contracts, NDAs and privacy notices, which show what you are allowed to do with the data

Which records do you have to keep anyway?

Separate from any licensing question, the IRS lists keeping records as one of the steps in closing a business. Its general guidance says income tax records are usually kept for at least three years, employment tax records for at least four years, and some records longer depending on the situation. Property records are kept until the limitations period ends for the year the property is disposed of.

Your accountant can tell you which retention periods apply to you. Licensing a copy of records to a buyer does not replace your own duty to keep them.

Who owns the data after a company is dissolved?

In general, business records belong to the company as an asset, not to the founders or employees personally. Dissolution does not instantly make those assets disappear. Delaware law, for example, keeps a dissolved corporation in existence for at least three years so it can settle its affairs, sell or transfer property, pay debts and distribute what is left to shareholders. A court can also appoint trustees or receivers to take charge of a dissolved company's property.

Delaware's rules also say creditors' claims are dealt with before anything is distributed to shareholders. So money from licensing records would normally be a company asset handled within that process. Rules differ by state and entity type, so ask your lawyer how they apply to you.

What can limit what you are allowed to license?

Owning the files is not the same as having the right to license them. Customer contracts, NDAs, vendor terms and the privacy notices you gave people can all restrict use. Employee records raise their own issues under privacy and employment law, and health and financial data may be regulated separately. The guide on employee and customer privacy explains more.

Some buyers remove or de-identify personal details, but that does not settle whether you hold the rights in the first place. Talk to your lawyer before agreeing to anything.

How does timing usually work?

Reporting in 2026 describes a growing market for records from closed startups. Buyers generally need time to review a sample, agree terms and process data, so the useful window is usually before the last accounts are switched off and while someone who knows the systems is still available.

If you are not sure yet whether to license anything, the low-cost step is to export and keep the data securely. You can decide later; a deleted workspace cannot be brought back.

Which buyers take records from closed companies?

Most buyer programs are written for operating companies. As of October 2026, micro1 runs a separate program for companies that are no longer operating: it asks for 30 or more employees, substantial Slack or Microsoft Teams history and records in English, and says it works in more than ten countries. Some code buyers also take closed companies' repositories. Use your peak headcount, not today's (Is my company too small to license its data?).

Before you apply, confirm who now controls the records: the former owners, an acquirer, or a bankruptcy trustee. That person or body is the one who can sign. Our eligibility check lists the buyers that accept closing or closed companies.

General information, not legal, tax or financial advice.