Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 10-12-2008, 12:04 PM
Junior Member
 
Join Date: Oct 2008
Posts: 1
Best time to dissolve S Corporation

Hello

I've decided to dissolve my Delaware S corporation as it isn't earning enough to cover taxes, where I am operating (California).

Do I need to do this before the end of the fiscal year (Dec 31) OR before the annual date on which I incorporated (late Oct).

Thank you!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 10-13-2008, 10:15 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
It is best to dissolve the S Corporation as soon as possible and definitely before the year end to avoid having to file the tax return for the tax year 2009.

So, best to dissolve the S Corporation before 12/31/08 and file a "Final Year Tax Return" in 2008 on Form 1120 S Corporation tax return. You will be required to pay the minimum Delaware Corporation Tax of Course, and therefore it is best that you do not maintain an active status in 2009 as again you may be subject to the minimum Delaware Corporation Tax for an S Corporation.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Should I dissolve S Corp or let be active? Taxrookie S-Corporation 5 01-25-2009 10:25 PM
dissolve s corp in ny....HELP!!! shoreshot S-Corporation 0 09-13-2008 12:01 PM
What are the consequences of not filing your Tax Return on time? TaxGuru General 0 09-04-2008 03:04 PM
How much time do I get before I have to rollover my retirement distribution? mongrel IRA/Sep 2 03-02-2008 09:41 PM
How to Avoid Tax Time Problems Samatg General 0 03-15-2007 07:57 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.