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how to close CA corporation

When one closes a CA corporation, is there a form to file to tell that FTB and SOS (secretary of state) that you want to close the corporation? At the federal level we have form 966. But is there anything at the state level? I know that the form 100 or 100-S must have Final checked, and the company must file a certificate of dissolution (but it's not clear when that has to be filed). In the old days it looks like one had to get a tax clearance certificate as well. How did that work?

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Yes. Here's all the information you should need to know, from the California Secretary of State:

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You would tell the Franchise Tax Board that you were going out of business, and ask them to verify that you had paid all taxes due. Once they had done so, the dissolution was allowed to proceed. I haven't done one in a while, but I believe that is no longer a requirement.

Reply to
Stuart A. Bronstein

FTB form 1038 provides a detailed explanation of the procedure to dissolve a California corporation. It's available in .pdf format here:

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This is much simpler than the tax clearance procedure that existed before 2006. Now all you have to do is file a return marked "FINAL," do no business after the end of that final year, and file all the required documents with the SOS within 12 months.

In the old days, you had to get the tax clearance certificate from the FTB before the SOS would file your dissolution papers -- and that could take several months and was a confusing process. It often resulted in the corporation's being subject to another $800 minimum tax before it was closed out.

Katie in San Diego

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Katie

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