Once you’ve decided to dissolve your company, tell the IRS and your state and local tax agencies your plans for closing your business. Take this step immediately after making a decision to close. This will provide you with the time you need to work through IRS and other tax agencies’ requirements for closure.

Is your business a corporation? If so, you'll need to file Form 966, Corporate Dissolution or Liquidation with the IRS within 30 days of filing your articles of dissolution. A tax attorney can help you complete this form.

When Do I Need a Tax Attorney?

Is your business facing tax challenges? Are you working through an audit? Are you up against some complexities in determining the tax liabilities for your small business? These are some of the most common reasons for working with a tax attorney, but there are lots of other circumstances in which you can benefit from a […]

Read More

www.owneractions.com

Would you like to connect with an attorney? Click the Connect button below to get started.

.

Every state requires businesses that have registered to collect and pay sales taxes to notify its tax authority about their dissolution. Some states could also ask you to obtain a tax clearance, consent to dissolution, or verification of good standing from your state’s tax agency before allowing you to dissolve your business. Most often, these requirements exist for corporations or limited liability companies (LLC) and can be attained by as long as your business is current on its state tax obligations.

If you are registered to collect and pay sales taxes in multiple states, you will need to contact each state’s tax agency to learn the steps you’ll need to follow. The phone number and website for each state are provided below:

What’s next?

Be sure to tell the IRS and other tax agencies your plans to close your business. Then, work through the other essential steps you’ll need to take to complete the process. These include informing your employees about your planned closure, recovering outstanding accounts receivable, settling up with creditors, filing final taxes, and canceling plans and benefits.

The list is long, but we can help you work through it. Log into your owner’s portal to attain a list of the actions you’ll need to take to complete the closure of your business.