Dear Tax Guru and fellow members,
I incorporated in Feb 2007 as the owner/sole shareholder of a Minnesota S-corp but did not end up doing business. As a result, there was no income (only setup/administrative expenses) that I reported as deductions on my first federal 1120S return (2007), which apart from those were essentially zeroes. I have not conducted business for 2008 as well, am now considering my options some of which are:
1) Under the present status quo, what are my reporting and tax obligations (both fed and/or state) to keep the corp active in case I decide to do business at a future date? An overview/estimate of time, effort and fees involved would help make this decision.
2) My understanding is that another option for an inactive corp is dissolution - what would that entail, who would I need to report to, by when, which forms etc.? Since it is near the end of the calendar year, I would like to ensure I can complete any time-sensitive tasks as soon as possible.
3) Is recharacterization of the business an option? What I mean by that is if I would like to try a different "type" of business without having to go through the dissolution and new registration processes, is that possible? Alternatively, could I broaden this corporation as an umbrella for other offshoots or subsidiary ventures? Again, what would those options entail, if available?
Finally, any useful links/references that can help me ramp up and make these decisions expediently would be appreciated. As a self-funded individual and without an income stream from the business, I do not have the luxury of capital for expert consultation but am willing to put in the effort needed to figure this out.
Your response and suggestions are appreciated. I would be happy to provide additional information if needed.