When do I know if I should close my company? 4 Answers as of August 01, 2011
I have a company (an LLC) that has had no revenue or employees since 12/2008. Should I close company or continue filing the 940 & 941 forms? IRS recommends closing the company.
Steven J. Fromm
| Steven J. Fromm & Associates, P.C.
If you have no assets and all liabilities are known at this point, you should dissolve the corporation under state law. Pennsylvania has a procedure for dissolving the corporation at the corporation bureau level. You also have to do certain steps with PA Department of Revenue. I know this is killing an ant with a sledgehammer but this is a very detailed and technical procedure if you want to do this correctly.
Answer Applies to: Pennsylvania
The Schreiber Law Firm
| Jeffrey D. Schreiber
If you are not going to continue business, there is no reason to keep it open. The IRS recommends it as you are sending them paperwork to process that has no tax liability and is work for them to process.
Answer Applies to: California
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