It’s never easy to close a business chapter, whether you’re retiring, pivoting, or simply walking away. However, one thing is absolutely clear: you must formally dissolve your inactive S Corp or LLC. Simply closing the doors is not enough.
Omni Resources can help you take on all of the steps needed to dissolve your entity with local, state, and federal authorities for a low flat fee of just $1,000. As you’ll see below, there are some very good reasons to get this done before December 19th arrives!
Time is Ticking: Avoid Costly Rollovers
Ignoring the dissolution process can have a direct, painful impact on your bottom line. You could be on the hook for another year of unnecessary costs if you don’t close this down by the end of the tax year. These can include:
- Further state and federal costs
- Business and personal tax expenses
The absolute critical deadline is December 19th. Failing to dissolve your business by that date means you’ll be rolling over into another year of liabilities and fees you shouldn’t be paying. That’s a mistake that can cost you a lot of money today, and year after year.
A proper dissolution is the prudent, responsible way to tie up loose ends, ensuring you are compliant and protected. Taking this action means you will be able to:
- Avoid unnecessary fees and taxes
- Settle up assets and remaining cash with shareholders
- Notify creditors you cannot incur any additional debts
Failing to follow the correct procedures doesn’t just cost you money; it also puts you at risk of an IRS audit of both you and your business. That’s a headache no one needs!
The Multi-Layered Process: Dissolving Your Entity the Right Way
Dissolving an LLC or S Corp is not a single filing – it is a structured, multi-step process governed by federal and state regulations. Skipping any of these essential steps can lead to financial liabilities and legal headaches. The good news is that Omni Resources can help you take care of all of these steps quickly and in the correct order!
Here is an overview of the structured winding-down process, which ensures a clean, compliant break:
- Formally Vote to Dissolve the Business. This is the critical first step. S Corps require a shareholder vote (following corporate bylaws), and LLCs require a vote from members (following the operating agreement). This decision must be documented in meeting minutes or a formal resolution.
- File Articles of Dissolution. Once the vote is approved, you must file this document with the Secretary of State where your business is registered. This officially notifies the state your operations are ceasing. Heads up: Some states require you to settle taxes before they will accept this filing.
- Notify Tax Agencies and Cancel Licenses. You must inform federal, state, and local tax authorities that the business is closing. This includes filing IRS Form 966 (for corporations) and canceling your Employer Identification Number (EIN). Additionally, you must cancel all licenses, permits, and registrations – from sales tax permits to professional certifications—to prevent future fees.
- Settle Creditor Claims and Distribute Assets. This step is non-negotiable. You must formally notify all creditors in writing, provide a deadline for claims, and then pay off all validated outstanding debts before any assets are distributed. Only after all debts are settled can you distribute remaining assets to the owners or shareholders, following your corporate bylaws or operating agreement.
- File Final Tax Returns and Close Accounts. The final, crucial step is filing your last federal and state tax returns, making sure to mark them as “final”. Finally, you’ll close all business bank accounts, credit lines, and merchant accounts.
Let Omni Resources Handle the Complexity for You
The process is clearly complex, requiring meticulous attention to legal documents, state requirements, and federal tax filings. For many business owners, trying to navigate this structured wind-down alone can prove overwhelming.
That’s where Omni Resources steps in. We offer you the experience, accuracy, and speed you need to make sure everything is handled “by the book” and on time.
For a single, final business deduction of just $1,000, Omni Resources will:
- Provide hands-on assistance through every step of the process in your specific state
- Handle every aspect of your dissolution – from initial planning to final confirmation
- Be there for you by phone or email whenever you have questions
Don’t risk unnecessary costs and legal exposure by missing the December 19th deadline. Let us ensure your business journey ends with a clean, compliant break, protecting your personal and financial future.