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Plan of Liquidation and Dissolution of a Corporation 2025

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The document outlines the Plan of Liquidation and Dissolution for a corporation, detailing the steps required for approval by the Board of Directors and shareholders, the process for selling assets, settling debts, and distributing remaining assets to shareholders. It emphasizes compliance with legal requirements and timelines for asset distribution and corporate dissolution.

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Click ‘Get Form’ to open the Plan of Liquidation and Dissolution of a Corporation in our editor.
Begin by entering the name of the corporation and the state where it is organized in the designated fields. This information is crucial for identifying your corporation.
Next, ensure that you document the approval process by detailing how the Board of Directors will adopt this plan. Include any necessary dates and procedures for notifying the Director of Internal Revenue.
Instruct shareholders to meet after reviewing the plan. Record their affirmative vote on dissolution, as this step is essential for legal compliance.
Outline how assets will be sold and debts settled. Specify timelines for distributions to shareholders, ensuring compliance with statutory limitations.
Finally, detail how corporate officers will execute this plan, including any required documentation for asset transfers.

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Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What does dissolution of a corporation mean?

Corporate or LLC dissolution is an official filing with the state where your business was originally formed. The action will terminate the legal existence of your company wherever it does business.

What are the tax consequences of dissolving an S corporation?

Yes, dissolving an S Corp comes with key tax implications at both the federal and state levels. Youll need to file a final income tax return for the year you dissolve and report gains or losses from selling business assets.

What happens if I dont file form 966?

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.

What is the plan of dissolution and liquidation?

The dissolution process begins when the owners or board of directors to create a resolution to dissolve the business and the articles of dissolution are filed with the secretary of states office. The company will then liquidate any assets not used as collateral for loans and settle all outstanding liabilities.

Which comes first, dissolution or liquidation?

Dissolution, or the process of dissolving a company, will occur after a liquidation as the business must be struck off the Companies House register.

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What is the purpose of form 966?

**Purpose: **Form 966 is filed by a corporation to initiate the process of dissolving and liquidating the corporations assets. It serves as notice to the Internal Revenue Service (IRS) that the corporation intends to terminate its existence.

What is the form 966 plan of liquidation?

Form 966, officially known as Corporate Dissolution or Liquidation, is a document filed with the IRS to notify them about a corporations decision to dissolve or liquidate. The IRS requires this form to be filed within 30 days of the corporation adopting a resolution or plan to dissolve or liquidate its affairs.

What needs to be attached to form 966?

The following information must be attached to this form: (2) A copy of the corporations certificate of dissolution or a copy of the corporations certificate of withdrawal. (3) A complete explanation of the plan or resolution. (4) A copy of the final corporate returns, both Federal and State.