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A corporation (or a farmer's cooperative) must file Form 966 if it adopts a resolution or plan to dissolve the corporation or liquidate any of its stock. Exempt organizations and qualified subchapter S subsidiaries should not file Form 966.
You must file Form 966, Corporate Dissolution or Liquidation, if you adopt a resolution or plan to dissolve the corporation or liquidate any of its stock. You must also file your corporation's final income tax return.
However, if an LLC elected to be taxed as a C corporation at any time, it would need to file Form 966 if it decides to dissolve or liquidate.
How to Dissolve an LLC Vote to Dissolve the LLC. ... File Final Tax Returns and Obtain Tax Clearance. ... File Articles or Certificate of Dissolution. ... Notify Creditors About Your LLC's Dissolution. ... Settle Debts and Distribute Remaining Assets. ... Close All Accounts and Cancel Licenses and Permits. ... Cancel Registrations in Other States.
It is required to file form 966 within 30 days of closing the corporation. This form can be prepared by the attorneys filing the dissolution documents. However, as this is a requirement of closing, it is important to file with the IRS.