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

Thanks for explaining! So line 10 just wants the date we decided to close down? For me it would be just me since I'm the only shareholder. Do I need to create some kind of formal document showing I decided to dissolve the company, or can I just put today's date?

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.

How does this taxr thing actually work? Do they complete the forms for you or just tell you how to fill them out? I'm shutting down my S-corp too but I'm worried about messing something up.

I'm skeptical about using some random website for something as important as dissolving a business. Did you verify this is legitimate? How much does it cost compared to just hiring an accountant?

The way it works is you upload your business documents, and the AI analyzes them and provides specific guidance for your situation. It doesn't complete the forms for you, but it gives you detailed instructions for each line item and explains what documentation you need to support everything. It's more like having an expert guide you through the process step by step. Regarding legitimacy, I was hesitant at first too, but they have proper security measures and don't store your documents after analysis. Cost-wise, it's significantly cheaper than hiring an accountant but still gives you expert-level guidance that's specific to your situation. For me, it was the middle ground between trying to figure everything out myself and paying thousands for an accountant.

Wait, how does this actually work? The IRS phone system is notoriously terrible. How can some third-party service get you through faster than calling directly?

This sounds like a scam. There's no way some random service can magically get you through the IRS phone queue. They probably just automate the calling and keep you on hold anyway. Did you actually get through to a real IRS agent or just someone pretending to be one?

It uses a system that continuously calls the IRS for you and navigates through the automated prompts. When it gets through to the queue, it notifies you so you can take the call. You don't have to sit there listening to the hold music for hours - you just get alerted when an actual human agent is available. Yes, I definitely spoke with a real IRS agent. They verified my information and answered specific questions about my S-corp dissolution that only an actual IRS employee would know. I was skeptical too at first, but it's essentially just automating the calling and waiting process so you don't have to waste your own time. The service doesn't pretend to be the IRS or intercept your call - it just gets you to the front of the line faster.

Thanks for pointing this out. Do I need to complete all these steps in a specific order? I'm wondering if I should file the state dissolution paperwork before or after submitting Form 966 to the IRS.

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.

I used TurboTax Business for my final S-corp return last year. It worked fine for the basic final 1120-S filing and had a section specifically for closing a business. But it didn't help at all with Form 966 or any of the state-specific dissolution documents. I ended up having to figure those out separately.

This is really helpful, thank you! I'm just starting this process myself and had no idea about the coordination with state requirements. Quick question - when you say "some states want you to file dissolution paperwork with them before submitting Form 966," how do you find out what your specific state requires? Is there a particular office or website I should check? I'm in California if that helps with any specific guidance.

For California specifically, you'll want to check with the California Secretary of State's office. They have detailed information on their website about S-corp dissolution requirements. In California, you typically need to file a Certificate of Dissolution with the Secretary of State and get tax clearances from both the California Franchise Tax Board and the Employment Development Department before they'll process your dissolution. I'd recommend calling the Secretary of State's business division directly - they're usually pretty helpful in explaining the specific steps and timing requirements for your situation. The process can take several weeks or even months depending on your tax situation, so definitely start early. Also make sure you're current on all your California franchise tax payments before beginning the dissolution process, as any outstanding amounts can significantly delay things.

For California specifically, you'll want to check with the California Secretary of State's office. They have detailed information on their website about S-corp dissolution requirements. In California, you typically need to file a Certificate of Dissolution with the Secretary of State, and you'll also need to get tax clearances from both the California Franchise Tax Board and the Employment Development Department before they'll process your dissolution. The California Secretary of State website has a business search tool where you can look up your corporation and see what filings are required. You can also call their business filing division directly - they're usually pretty helpful with questions about the dissolution process. Just make sure you handle any outstanding tax obligations with California before starting the dissolution process, as they won't let you dissolve if you have unpaid taxes or haven't filed required returns.

For California, you'll want to check with the California Secretary of State's office. They have specific requirements for S-corp dissolution that you need to follow. In California, you typically need to file a Certificate of Dissolution with the Secretary of State and get tax clearances from both the California Franchise Tax Board and the Employment Development Department before they'll approve your dissolution. You can find the specific forms and requirements on the California Secretary of State website under "Business Programs" and then "Corporations." The process can take several weeks or even months depending on whether you owe any taxes or have other compliance issues, so definitely start the state process early while you're working on your federal paperwork. I'd recommend calling the Secretary of State's business filing division if you have questions about the specific sequence - they're usually pretty helpful in explaining what order things need to happen in.

For California, you'll need to file Articles of Dissolution with the California Secretary of State. You can check their website at sos.ca.gov - they have a specific section for business dissolutions. California generally requires you to get tax clearances from both the California Franchise Tax Board and the Employment Development Department before they'll approve your dissolution. The good news is that California doesn't require you to complete the state dissolution before filing Form 966 with the IRS - you can do them in parallel. But I'd recommend starting the California process early because getting those tax clearances can take several weeks. You'll also need to file a final California tax return (Form 100S) and make sure all your state taxes are current. The Secretary of State's office has a dissolution checklist that's pretty helpful for making sure you don't miss any California-specific requirements.

For California, you'll want to check with the California Secretary of State's office. They have specific requirements for S-corp dissolution that you need to follow. You'll typically need to file a Certificate of Dissolution with them, and California usually requires that you be current on all state taxes and fees before they'll process the dissolution. I'd recommend visiting the California Secretary of State's business portal online or calling their business division directly. They can tell you the exact sequence and requirements for your situation. California can be pretty strict about the order of filings, so definitely check with them before submitting anything to the IRS. Also, don't forget about the California Franchise Tax Board - you'll need to file a final California tax return and get clearance from them as part of the dissolution process. The state requirements can actually be more complex than the federal Form 966 in some cases.

For California specifically, you'll need to check with the California Secretary of State's office. They have detailed information on their website about S-corp dissolution requirements. California typically requires you to file a Certificate of Dissolution with them and get tax clearances from both the California Franchise Tax Board and the State Board of Equalization (for sales tax if applicable) before they'll process your dissolution. The good news is that California doesn't strictly require you to complete the state dissolution before filing Form 966 with the IRS - you can often run these processes in parallel. But you'll definitely want to start the California paperwork early because getting those tax clearances can take several weeks. I'd recommend calling the California Secretary of State's business division directly if you have specific questions about timing and requirements. They're usually pretty helpful with dissolution questions.

For California specifically, you'll want to check with the California Secretary of State's office. They handle corporate dissolutions and have specific forms you need to file (usually Form LLC-4/7 for dissolution). You can find the requirements on their website at sos.ca.gov. California typically requires you to get a tax clearance from the Franchise Tax Board before they'll process your dissolution, and they may want you to file state dissolution paperwork before or around the same time as your federal Form 966. I'd recommend calling their business filing division directly to confirm the exact sequence they prefer - it can save you from having to refile anything later. Also, don't forget that California has that $800 minimum franchise tax that might still be due even in your final year, depending on when you dissolve. Worth double-checking so you don't get any surprise tax bills after you think everything is closed.

For California specifically, you'll want to check with the California Secretary of State's office. They handle corporate dissolutions in CA. You can find the requirements on their website at sos.ca.gov - look for the "Business Programs" section and then "Corporations." California typically requires you to file a Certificate of Dissolution with them, and you'll need to be current on all state taxes and fees before they'll process it. They also require you to publish a notice of dissolution in a newspaper in some cases. I'd recommend calling their business helpline to confirm the exact sequence and requirements for your situation, since California can be pretty strict about following their procedures in the right order. The good news is that California doesn't usually require you to complete their dissolution before filing Form 966 with the IRS, but definitely verify this since requirements can change.

For California, you'll need to check with the California Secretary of State's office. Their website has specific requirements for S-corp dissolution. Generally in CA, you file Articles of Dissolution with the Secretary of State, but you also need to get tax clearance from both the California Franchise Tax Board and the Employment Development Department before they'll approve your dissolution. The CA Secretary of State website has a "Business Entities" section with dissolution forms and requirements. I'd recommend calling their business filing division directly if you have questions about the specific order of filing - they're usually pretty helpful about walking you through the process. Each state is different, so definitely don't assume the federal and state processes can happen in any order without checking first.

For California, you'll want to check with the California Secretary of State's office. Their website has specific requirements for dissolving S-corporations, including the order of filings. Generally, California requires you to file a Certificate of Dissolution with them, but you'll also need to get tax clearances from both the California Franchise Tax Board and the California Department of Tax and Fee Administration before they'll approve the dissolution. I'd recommend calling the Secretary of State's business filing division directly - they're usually pretty helpful with walking you through the specific steps for your situation. The process can take several weeks, so definitely start the state paperwork early while you're working on your federal forms.