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Commonly Asked Questions about Corporation Dissolution Legal Forms

A corporation (or a farmers cooperative) must file Form 966 if it adopts a resolution or plan to dissolve the corporation or liquidate any of its stock.
Failure to dissolve your business can also leave you open to forms of business fraud, such as business identity theft. Step 1: Get approval of the owners of the corporation or LLC. Step 2: File the Certificate of Dissolution with the state. Step 3: File federal, state, and local tax forms. Step 4: Wind up affairs. How to dissolve a business in 7 steps | Wolters Kluwer wolterskluwer.com expert-insights busin wolterskluwer.com expert-insights busin
Some dissolved corporations keep a fund active to pay these taxes or transfer assets to another corporation that will pay the taxes. If the corporation is a sole proprietorship, the owner will generally pay the taxes out of her personal account at the end of the tax year.
Generally, a California resident with a single-member LLC does not need to file Form 966 for dissolution, as long as the LLC was never taxed as a C corporation.
There are 3 main ways a company can be dissolved administratively, voluntarily, and judicially.
Form 966, also known as the Corporate Dissolution or Liquidation form, must be filed by any corporation or LLC that is dissolving or liquidating. Basically, it is a form that must be filed with the IRS to inform them that your business is shutting down.
Corporation Dissolution Complete the Request for Consent to Dissolution form. If you are filing the request on behalf of a corporation, you must also complete a Power of Attorney form. Mail the forms to DOF. DOF will send you a Dissolution Consent.
Finalizing the winding down process: Filing Form 966 is an essential step in formally closing down a corporation. By submitting this form, the corporation notifies the IRS about its intention to dissolve or liquidate, allowing for the finalization of the winding down process.
When and Where To File. File Form 966 within 30 days after the resolution or plan is adopted to dissolve the corporation or liquidate any of its stock. If the resolution or plan is amended or supplemented after Form 966 is filed, file another Form 966 within 30 days after the amendment or supplement is adopted.