Liquidating a close corporation


If you neglect to file the appropriate form, you will continue to be liable for paying annual report fees as well as minimum taxes to those states, even if you cease all operations.Corporations, don't forget to also file IRS Form 966, .Most states charge a small fee for filing the form—check the form instructions for the amount.When you send in your dissolution form to the state, include a cover letter with your business name and corporation or LLC number as well as your name, return address, and telephone number. To be safe, send the form by certified mail, with return receipt requested.If your corporation or LLC has qualified (registered) to do business in other states, you'll also need to file a form to withdraw your right to transact business in that state.This form may be called an application of withdrawal, certificate of termination of existence, termination of registration, or certificate of surrender of right to transact business.

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If that money hasn’t been shared between the shareholders by the time the company is removed from the register, it will go to the state.The vote to dissolve the entity should be recorded in a resolution in the minutes of a meeting or with a written consent form and put it in your corporate or LLC records book.Next, visit your state's secretary of state or corporations division website to find the dissolution form.You’ll need to restore your company to claim back money after it’s been removed from the register. One can only sequestrate, in terms of the Insolvency Act, if one owns a property (or other big, fully paid assets) or if one has cash.In these states, the secretary of state or corporations division will not allow your corporation or LLC to dissolve if you have not filed your last tax return (checking the "Final tax return" box and writing FINAL at the top) and paid all taxes owed.

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