Many businesses at some point come to an end, and the time comes to dissolve them. However, terminating a business is not something that can be done overnight. To protect your rights and tie up loose ends, there are some essential steps you need to take when dissolving your business.
Our New York business attorneys assist companies at all life stages, from formation to termination. If you’re prepared to wind down your business, Rosenbaum & Taylor is here to assist you.
Taking Care of Tax Matters
New York corporations organized under the state’s laws must file and pay taxes. This obligation continues until the business is formally dissolved. Some business owners believe that this duty ceases if the business operations do. But you must keep up with this responsibility even if your company:
- Doesn’t conduct any business
- Doesn’t employ any workers
- Doesn’t own or lease property
- Doesn’t maintain an office in the state
- Doesn’t engage in any activity, inside or outside the state
As long as the company exists as a New York corporation, corporate tax returns have to be filed. And any unpaid taxes will continue to be owed as well. Officially dissolving your business, however, will end this responsibility.
You will need to first obtain written consent from the Tax Department (not required for limited liability companies). Doing this will check to see if your corporation owes back taxes and if it has filed all its returns. A New York business lawyer can assist with this process and help you take care of any lingering tax obligations.
File a Certificate of Dissolution and Other Paperwork
When you’re ready to officially shut down the business, you will have some paperwork to file. This needs to be sent to the New York Department of State along with appropriate filing fees. Your filing will need to include:
- The written consent from the Tax Department (Form TR-960)
- The Certificate of Dissolution
- The filing fee, which is currently $60
Once this process is completed you will receive a filing receipt. It is vital that you keep this document in a safe place. It establishes the date that the corporation’s existence comes to an end in New York.
We Can Take the Guesswork Out of Dissolution
If it’s time to end your business, we want to help you do so responsibly. Reach out to the New York business law attorneys of Rosenbaum & Taylor. We can handle the legal steps involved with dissolving your business so you can move on to whatever comes next. Call us today.
