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The first is voluntary dissolution, which is an elective decision to dissolve the entity. A second is involuntary dissolution, which occurs upon the happening of statute-specific events such as a failure to pay taxes. Last, a corporation may be dissolved judicially, either by shareholder or creditor lawsuit.
In general, the majority vote of the shareholders or members of a closely-held company can elect corporate dissolution. It may then be left to the officers or directors of the company to execute on winding down the company and distributing assets.
A shareholder resolution to dissolve corporation agreement is an authorization used when shareholders, during a formal meeting, agree to dissolve the corporation.
Complete the process by filing with the New York Department of State written consent from the Tax Department (Form TR-960, Consent to Dissolution of a Corporation); one Certificate of Dissolution; and. a check for $60 payable to the New York Department of State.
Some taxpayers are selected regularly because of their size, sales volume, or the complexity of their returns. Others may be chosen because of a specific event. For example, closing a store in a particular location, bankruptcy, or the dissolution of the business may trigger an audit.
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.
The directors must formally agree to close down the company, either by passing a resolution at a board meeting or by written board resolution. You can then complete and file Companies House Form DS01.
Notify creditors and make payment arrangements for all debts. Close bank accounts and pay federal, state and local taxes along with filing the appropriate returns. Relevant permits should be canceled along with assumed names. Sell any remaining business property and distribute the appropriate funds to shareholders.