Need help closing down my s-corp, stuck on Form 966 paperwork

So I'm finally shutting down my small business after 6 years of struggling to keep it afloat. I decided to dissolve my S-corporation since it's just not making sense financially anymore. I'm trying to handle the paperwork myself to save on accountant fees (probably not the smartest move but here we are). I started filling out Form 966 to close the s-corp but I'm completely stuck on Line 10. It's asking for something and I'm not sure exactly what information they want me to provide there. Has anyone gone through this process before? What exactly did you put on line 10? The rest of the form seems pretty straightforward, but this part is confusing me. I'd really appreciate if someone who's actually been through the s-corp dissolution process could help me out here.

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20 comments

Brady Clean

•8M

Line 10 on Form 966 is asking for the date the resolution or plan to dissolve was adopted by the corporation. This would be the official date when you (and any other shareholders if applicable) formally decided to dissolve the S-corporation. This should be documented in your corporate minutes or in a written corporate resolution. Make sure you also file Form 1120-S for your final tax year, checking the "final return" box. You'll also need to issue final K-1s to all shareholders with the "final K-1" box checked. Don't forget to file any required state dissolution paperwork too - the IRS form is just the federal part of closing down an S-corp.

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Brady Clean

•8M

You should create a simple corporate resolution document even if you're the only shareholder. It doesn't need to be complex - just a statement that you, as the sole shareholder and director of your S-corporation, have decided to dissolve the corporation as of a specific date. Sign it, date it, and keep it with your business records. Don't use today's date if you haven't formally created this document yet. Create the resolution first, then use that date on Form 966. The IRS might request to see this documentation if they have questions about your dissolution.

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Skylar Neal

•8M

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Kelsey Chin

•8M

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Norah Quay

•8M

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Norah Quay

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Kelsey Chin

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Jessica Nolan

•8M

Don't forget that closing down an S-corp isn't just about Form 966. You also need to: 1. File Articles of Dissolution with your state 2. Cancel business licenses and permits 3. File final employment tax returns if you had employees 4. Close business bank accounts and credit cards 5. Notify customers, vendors, and creditors I made the mistake of only focusing on the IRS forms and ended up with issues at the state level that took months to resolve. Line 10 is important, but don't miss the bigger picture of everything involved in properly dissolving an S-corporation.

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Jessica Nolan

•8M

The general order I followed was: First, create the corporate resolution to dissolve (this gives you the date for Line 10 on Form 966). Then file your state dissolution paperwork since many states require this before the federal filing. After that, submit Form 966 to the IRS, followed by your final tax returns when they're due. Just be aware that some states won't process your dissolution until you get a tax clearance certificate, which can take time. So start the state process early even if you're still working on the federal forms. The IRS and state processes can often run parallel to each other.

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Zoe Kyriakidou

•5M

I went through this exact process last year when I dissolved my S-corp. For Line 10 on Form 966, you need the date when you formally adopted the resolution to dissolve the corporation. Even as a sole shareholder, you should create a simple written resolution stating your decision to dissolve the S-corp and date it. That's the date that goes on Line 10. Here's a basic template I used: "I, [Your Name], as the sole shareholder and director of [Corporation Name], hereby resolve to dissolve this corporation effective [Date]." Sign it, date it, and keep it with your corporate records. One thing to watch out for - make sure you coordinate the timing with your state filing requirements. Some states want you to file dissolution paperwork with them before submitting Form 966 to the IRS, while others are more flexible. Check your state's specific requirements to avoid any complications.

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