How does one terminate a California C Corp ?
irfan...@gmail.com
1. for the IRS..
What forms ( form numbers ) should one use ?
2. For California
What forms ( form numbers ) should one use ?
Also any input on how easy / difficult it is.... would be great.
Regards,
Irfan Smith
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Stuart Bronstein
> How does one terminate a California C Corp ?
This is more a legal question than a tax one, though there are tax
elements involved.
> 1. for the IRS..
> What forms ( form numbers ) should one use ?
The preparers here will have better information. My understanding is
that you can indicate that the last return is the final one.
> 2. For California
> What forms ( form numbers ) should one use ?
For a California corporation you need to first pay all taxes, and then
request a tax clearance certificate from the Franchise Tax Board. Once
you get that, you have a limited time (I don't recall off the top of my
head - perhaps 30 days) to finalyze the internal corporate documents.
Then there are other documents that gets filed with the Secretary of
State to document final termination.
Go to the California Secretary of State's website, and they will tell
you just what is needed.
> Also any input on how easy / difficult it is.... would be great.
It's not very difficult if you know what you're doing.
Stu
Katie
> How does one terminate a California C Corp ?
>
> 1. for the IRS..
> What forms ( form numbers ) should one use ?
>
> 2. For California
> What forms ( form numbers ) should one use ?
>
> Also any input on how easy / difficult it is.... would be great.
>
California's procedures for dissolving or cancelling a corporation
were simplified a couple of years ago, to everyone's relief. It is no
longer necessary to obtain a tax clearance certificate from the FTB.
Now all that one has to do is (1) file a final return, so designated,
with the FTB and (2) within 12 months of the date of filing the final
return, file the appropriate dissolution or cancellation documents
with the Secretary of State.
For detailed information, see FTB Publication 1038,
http://www.ftb.ca.gov/forms/misc/1038.pdf. The dissolution forms are
available on the Secretary of State's web site, sos.ca.gov
Katie in San Diego
Stuart Bronstein
> California's procedures for dissolving or cancelling a corporation
> were simplified a couple of years ago, to everyone's relief. It
> is no longer necessary to obtain a tax clearance certificate from
> the FTB. Now all that one has to do is (1) file a final return, so
> designated, with the FTB and (2) within 12 months of the date of
> filing the final return, file the appropriate dissolution or
> cancellation documents with the Secretary of State.
Thanks for the update, Katie. I was unaware of that.
Stu