Cut line in the Plan of Dissolution effortlessly

Aug 6th, 2022
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How to Cut line in the Plan of Dissolution

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hey there youtube so in this video i wanted to cover the irs form 966 this is the form for corporate dissolutions or liquidations so if you have a us corporation so this is a lets say a regular corporation for-profit corporation informed under state law or if you have an llc that filed an election to be taxed as a c-corp if you close down that entity you will need to file this form 966 within 30 days after you adopt a plan or resolution to close down the company so i want to run through the form the various elements and the things you need to include with it just to make sure youre doing this as correctly as possible so the top of the form is relatively straightforward right we have the name of the corporation uh here obviously ive got a fake company fake delaware company inc not a real business so dont use this uh the mailing address for the company the ein for the company and the type of return were filing right so this is a standard c corp return so 1120 if you have an s corpo

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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.
What is a Plan Of Dissolution? A plan of dissolution is a written description of how an entity intends to dissolve, or officially and formally close the business. A plan of dissolution will include a description of how any remaining assets and liabilities will be distributed.
If a business is not properly dissolved, it continues to exist as a legal entity under state law. This means that it will be remain subject to corporation or LLC filing requirements, such as annual reports and franchise taxes.
In the dissolution process, any partner may dissolve the partnership at any time by providing a notice of dissolution. The partnership is then required to wind up its business activities and distribute its assets.
There is no direct Form 966 penalty for non-filing or late filing, but by not properly notifying the IRS of a dissolution or liquidation, it may result in collateral damage and other penalties.
A corporation must file Form 966 if its adopts a resolution or plan to dissolve the corporation or liquidate any of its stock.
After the bankruptcy, the LLCs remaining debts are wiped out and the LLC is no longer in business. The LLCs owners are generally not responsible for the LLCs debts. Sometimes, however, an LLC owner signed a personal guarantee that makes the owner personally responsible for a business debt.
After a company is dissolved, it must liquidate its assets. Liquidation refers to the process of sale or auction of the companys non-cash assets. Note that only those assets your company owns can be liquidated. Thus, you cant liquidate assets that are used as collateral for loans.

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