Dissolving a S corp in Maryland
Submitted by Anonymous on Wed, 2009-11-18 11:34.
My question is: I know that I have to fill out "Articles of Dissolution" and file it with the State Dept of Assessments and Taxation. Is there anything else after that I would need to do? Also, when completing my taxes, how do I show any of the assets? Can I just take them off of the asset worksheet that you pay property taxes on? Our corp has had no income for the year 2009.
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S Corp Dissolution
Yes!Lots!!
You have to file all your employment tax returns. They all have a "Final" checkbox. Don't forget the W-2s, 1099s, etc.
Once all the bills have been paid & the checks have cleared, you need to close the bank accounts. Once all the assets have been distributed the corporation is liquidated and you have 75 days to file the final tax return.
You need to include Form 966, Corporate Dissolution or Liquidation.
Since the assets are all distributed the ending balance sheet should all have $0s.
The K-1, Line 16d should include the distribution, cash & property, you received. The likely ending basis is $0.
If you received distributions in excess of basis you could have capital gains & there could be some gain on the distribution of assets depending on the nature of your business & its assets.
Yes, whenever the corp sells or otherwise disposes of assets, you should take the value off the property tax rolls.
I hope this helps but I'm sure I just raised more questions!
L:)