I think once the royalty did shut down his theater.
I believe you're referring to when his plays couldn't be performed under Puritan religious rule. Either that or the time when The Rose (when Shakespeare was most likely only acting) was closed due to the plague. It was eventually shut down because the rent was too high.
English kings had to made to look heroic, unless they were out of favor like Richard II. So he made the fool wiser than King Lear. That was his revenge. The crowds must have loved it.
Did you know Elizabeth is documented as saying 'I am Richard the II, know ye not that?' before executing the Earl of Essex, who used the play to stage a rebellion against her? She played a vital patron and commissioner of Shakespeare's work.
And surely you've not read/seen The Merry Wives of Windsor
after that comment, because that's nothing but a taking the p--- out of Henry the VIII. There is no such documentation that claims Shakespeare as having to make the kings look heroic. The nature and structure of his plays certainly suggest the opposite.
It was obvious that his plays were so popular with the groundlings because of his attitude toward the monarchs and the wealthy. It's also conceived that there were mixed emotions toward characters like Richard III - wouldn't you have sympathy for a disabled locked away from the kingdom to see?
And Shakespeare distilled all of his plays. They may be based on true events, but should not be taken as facts. Even his comedies are based on former plays. He was quite a master at taking and revising ideas into rhetorical entertainment.