How To Dissolve close A California Domestic Stock Corporation

How do I close my California corporation so I dont have to pay taxes in 2010? Need to file your corporate certificate of dissolution in Sacramento, California on an expedited basis and dont know where to start? Read onIts important to dissolve close your California corporation properly to avoid having to pay Californias minimum $800.00 Franchise Tax in the new year. You must file dissolution documents (Certificate of dissolution/Certificate of Election to wind up and dissolve) with the California Secretary of States office to formally dissolve your corporation.

A visit to the California Secretary of States website will most likely have you confused as there are multiple forms and not a lot of instruction as to which forms apply to your California corporation dissolution. Just follow these guidelines for assistance.

Option 1: How old is your domestic California corporation? If the California corporation is less than one year and has never issued shares or conducted any business, the California Secretary of State only requires a Short form dissolution document to close your corporation.

If the California Corporation is older than a year old or does not qualify for a short form dissolution, choose from the following options.

Option 2: If the corporation is over a year old and has issued shares of stock AND the election to dissolve the corporation was made by the vote of all outstanding shares, complete the Certificate of Dissolution only.

Option 3: If the California Corporation has NOT issued any shares OR if the election to dissolve was NOT made by the vote of all the outstanding shares, complete both the Certificate of Dissolution AND Certificate of Election to Wind up and Dissolve.

If your corporation is a foreign corporation (any corporation that was formed in a state or country other than California) you will need to file a Certificate of Surrender the right to transact business in California.

Before you file any of your dissolution documents make sure to check your corporations status. Your California Corporation or qualified foreign corporation must be active and good standing. If your corporation is suspended (forfeited for foreign corporations), you cannot dissolve your corporation until your corporation has revived. You must contact the California Secretary of States office at 916-653-3365 to obtain revivor information. If your corporation is suspended by the California Franchise Tax Board you will need to call the FTB at 800-852-5711.

Do keep in mind that filing the dissolution documents with the California Secretary of States office is required to close your corporation, you will have to file your final tax return with the IRS and FTB and pay any owed or outstanding taxes and/or penalties. Consult your accountant directly for any tax related questions. If you require assistance in completing your dissolution documents its highly suggested that you consult your accountant or attorney for any tax or legal questions. This document should not be construed as legal or tax advice but rather an outline to get you through the process of dissolving your California Corporation the right way the first time.

Sun Document Filings can file your California corporation dissolution documents with the California Secretary of State on an expedited basis in Sacramento. We have forms and instructions on our website.