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If I dissolve a corporation that has assets, what do I do with the money in an account owned by the corporation? This is not an S corp. I was just going to transfer the money to my personal account, but I'm suspecting that the USA has some crazy laws related to this that may make me an instant criminal by taking the withdrawal.
Do I have to pay myself the balance in the form of a dividend? Then pay taxes on it? Is there any other paperwork needed or IRS stuff to file?
If I dissolve a corporation that has assets, what do I do with the money in an account owned by the corporation? This is not an S corp. I was just going to transfer the money to my personal account, but I'm suspecting that the USA has some crazy laws related to this that may make me an instant criminal by taking the withdrawal.
Do I have to pay myself the balance in the form of a dividend? Then pay taxes on it? Is there any other paperwork needed or IRS stuff to file?
All I can say is repeat the advice of my CPA when I closed down one business: Keep your business incorporated for seven years, because the moment you shut down a business it's a red flag for an IRS audit. After seven years, you don't need to keep business records.
So when I shut down one of my business, I essentially gave myself a dividend for what was left over and continued filing corporate taxes for it showing zero income. And I would head to my storage locker the first business day of every year, to destroy the records from eight calendar years previously.
All I can say is repeat the advice of my CPA when I closed down one business: Keep your business incorporated for seven years, because the moment you shut down a business it's a red flag for an IRS audit. After seven years, you don't need to keep business records.
So when I shut down one of my business, I essentially gave myself a dividend for what was left over and continued filing corporate taxes for it showing zero income. And I would head to my storage locker the first business day of every year, to destroy the records from eight calendar years previously.
If you don't mind I'd like to clarify what you did because I am considering shutting down a C corp (I am the only shareholder). So let's say you had $50,000 in liquid assets in the corporation, you then paid yourself a dividend of $50,000 of which you would pay on your personal income tax and then to keep from being audited you maintained that corporation for seven more years until you dissolve/d it. Am I correct?
All I can say is repeat the advice of my CPA when I closed down one business: Keep your business incorporated for seven years, because the moment you shut down a business it's a red flag for an IRS audit. After seven years, you don't need to keep business records.
So when I shut down one of my business, I essentially gave myself a dividend for what was left over and continued filing corporate taxes for it showing zero income. And I would head to my storage locker the first business day of every year, to destroy the records from eight calendar years previously.
Thank you sweetheart. The law links are good, but it is also nice to get some tips from people with experience. Maybe I'll also check with an accountant. It sounds ok though as long as I'm not using the business to get tax breaks.
If you don't mind I'd like to clarify what you did because I am considering shutting down a C corp (I am the only shareholder). So let's say you had $50,000 in liquid assets in the corporation, you then paid yourself a dividend of $50,000 of which you would pay on your personal income tax and then to keep from being audited you maintained that corporation for seven more years until you dissolve/d it. Am I correct?
Thank you sweetheart. The law links are good, but it is also nice to get some tips from people with experience. Maybe I'll also check with an accountant. It sounds ok though as long as I'm not using the business to get tax breaks.
Always good advice
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