How to Dissolve a Corporation

Dissolving a corporation can be an extremely complicated process. For a corporation to be considered properly dissolved, the following steps are required:

• a formal corporate action
• a filing with the appropriate state offices
• a statutory notice to creditors
• processing of all creditor claims
• sale and distribution of all remaining assets

First, the corporation's board of directors has to meet and propose a corporate dissolution. Minutes of this meeting must be recorded by the corporation's secretary in the corporate book. After this has occurred, a majority of shareholders must approve the board of director's proposed dissolution action. The corporation is then required to file IRS Form 966 within 30 days after the adoption of a plan or resolution to dissolve the corporation. Also read Dissolving a Corporation: Necessary Legal Steps for more helpful pointers on this topic.