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RESOLUTION TO TERMINATE S CORPORATION STATUS IT IS HEREBY RESOLVED BY THE SHAREHOLDERS AND/OR DIRECTORS of, a Corporation as follows:RESOLVED, the following corporate officer(s) and/or representative(s),
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How to fill out terminate s corporation

01
Consult with a tax professional or attorney specialized in S Corporations to fully understand the implications and requirements of terminating the S Corporation.
02
Hold a meeting with the corporation's shareholders and adopt a resolution to terminate the S Corporation status.
03
File a final tax return for the S Corporation using Form 1120S, reporting all income, deductions, and credits up until the termination date.
04
Distribute the corporation's assets and property to the shareholders in accordance with the corporation's bylaws or operating agreement.
05
File the necessary state and local tax forms to officially dissolve the S Corporation and close its tax accounts.
06
File Form 966, Corporate Dissolution or Liquidation, with the IRS within 30 days of the termination date.
07
Notify the appropriate state agencies, such as the Secretary of State's office, of the termination and request the cancellation of the corporation's registration or charter.
08
Keep copies of all the necessary documents and filings for future reference and compliance purposes.

Who needs terminate s corporation?

01
Business owners who want to cease operating as an S Corporation and no longer enjoy the benefits of pass-through taxation and other S Corporation advantages.
02
Businesses that have undergone significant changes in ownership, structure, or operations and find it more advantageous to switch to a different tax structure.
03
Corporations that have fulfilled their purpose or achieved their objectives and wish to dissolve and liquidate their assets.
04
S Corporations facing financial difficulties, lawsuits, or other legal challenges that make it impractical or unwise to continue operating as an S Corporation.

What is s corporation status Form?

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To terminate an S Corporation means to end its S Corporation status, converting it into a C Corporation or dissolving the company altogether.
Any corporation that has elected S Corporation status and wishes to end that status must file a termination of S corporation form, usually done by the shareholders.
To fill out the termination of S Corporation form, you need to provide the corporation's name, EIN, the date of termination, and whether the termination is voluntary or involuntary, along with required signatures.
The purpose of terminating S Corporation status is to revert back to a C Corporation for various reasons, such as changes in ownership, business strategy, or tax implications.
The report must include the corporation’s name, address, EIN, date of termination, and statements regarding the reasons for termination and shareholder approval.
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