“How To Shut Down
Your S Corporation”
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with all the details…
“Parting is such sweet sorrow” said Juliet to Romeo.
Well, shutting down your S corporation can also be sweet or sorrow.
It all depends on how you face federal income-tax issues for both the corporation and its shareholders.
There are basically two ways you can go (and I am simplifying a lot).
Key points for stock sale
One way to shut down an S corporation is for you and the other shareholder(s),
if any, to simply sell all your company stock and move on.
The gain from selling S corporation stock is treated as a capital gain.
Key points for Asset Sale and Liquidation
Perhaps the most common way to shut down an S corporation is for the
corporation to sell all of its assets, pay off all of its liabilities, and distribute
the remaining cash to the shareholder(s) in complete liquidation.
Believe me, this subject is extremely complex.
To get you started, don’t miss my information-packed article titled…
“How To Shut Down
Your S Corporation”