Forms for liquidating an s corporation
The focus of the managers of an S corporation must turn to legally dissolving the business and liquidating assets within a reasonable period of time.
The 966 form and instructions are available at the gov web site.
A methodical plan and a realistic timeline help take the stress out of closing up shop.
A sole proprietorship, LLC or even a partnership often is small, with few owners or just one.
While “complete liquidation” is not defined by the Internal Revenue Code, IRS regulations suggest that your corporation enters liquidation status when it ceases to be a going concern and, instead, corporate activities are mainly for the purpose of closing down the business, paying corporate debts and distributing remaining assets to the shareholders.
You can draft your corporation’s bylaws to describe specific processes for liquidation and dissolution.
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Note: The discussion here focuses on steps for dissolving an S corporation, but the information will probably also be helpful if you're asking yourself questions such as, "How do I end a corporation? ", and "how do I stop doing business as a corporation? Fortunately, shutting down an S corporation doesn't have to be that much work. Legally what you do to "shut things down" is file articles of dissolution with the secretary of state in the state where you formed the corporation or limited liability company used for the S corporation.