How does one terminate a California C Corp ?

This is more a legal question than a tax one, though there are tax elements involved.

The preparers here will have better information. My understanding is that you can indicate that the last return is the final one.

For a California corporation you need to first pay all taxes, and then request a tax clearance certificate from the Franchise Tax Board. Once you get that, you have a limited time (I don't recall off the top of my head - perhaps 30 days) to finalyze the internal corporate documents. Then there are other documents that gets filed with the Secretary of State to document final termination.

Go to the California Secretary of State's website, and they will tell you just what is needed.

It's not very difficult if you know what you're doing.

Stu

California's procedures for dissolving or cancelling a corporation were simplified a couple of years ago, to everyone's relief. It is no longer necessary to obtain a tax clearance certificate from the FTB. Now all that one has to do is (1) file a final return, so designated, with the FTB and (2) within 12 months of the date of filing the final return, file the appropriate dissolution or cancellation documents with the Secretary of State.

For detailed information, see FTB Publication 1038,

Thanks for the update, Katie. I was unaware of that.

Stu