How To Dissolve close A California S Domestic Stock Corporation

How do I close my California S corporation so I dont have to pay taxes next year? 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 S 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 S 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 CA S Corp. dissolution. Just follow these guidelines for assistance.

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

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

Option 3: If the California S 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 S Corporation is a foreign Corp. (any Corp. 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 S Corp.s status. Your CA S Corp. or qualified foreign Corp. must be active and good standing. If your Corp. is suspended (forfeited for foreign S Corps), you cannot dissolve your Corp. until your corporation has revived. You must contact the CA Secretary of States office at 916-653-3365 to obtain revivor information. If your S corporation is suspended by the CA 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 CA Secretary of States office is required to close your S 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 CA Corporation the right way the first time.

Sun Document Filings can file your CA S Corp. dissolution documents with the CA Secretary of State on an expedited basis in Sacramento. Forms and instructions can be found on our website