Business Closure
Business Dissolution: Close Clean, Stop the Fees
An improperly closed company continues to accumulate annual franchise tax and reporting fees even after it stops operating. Formal dissolution involves filings at both the state and federal level.
2–8 weeks
State processing
3 years
IRS audit window
7 years
Keep your records
Who this is for
- LLCs or corporations that have stopped operations
- Old entities after restructuring or mergers
- Owner-operators switching companies or retiring
What we handle
- State Articles of Dissolution filing
- IRS final tax return preparation (with Final Return election)
- Outstanding tax balance review and clearance assistance
- Final W-2 processing for employees
- EIN closure assistance
All outstanding tax returns must be filed and payroll taxes cleared before dissolution is approved — an incomplete filing history will cause the application to be rejected.
Frequently Asked Questions
Do I need to file all back tax returns before I can dissolve?+
Yes. California requires all returns to be filed and outstanding taxes paid before approving dissolution. We'll audit your filing history first to make sure nothing blocks the application.
Can the IRS still come after me after the company is dissolved?+
Yes. Dissolution doesn't erase prior tax liabilities. The IRS audit window is typically 3 years from the return date (6 years for substantial underreporting). Keep all financial records for at least 7 years.
Can I just stop operating without formally dissolving?+
You can, but the company continues to owe $800/year in franchise tax and annual report fees even with no activity. If you don't plan to restart, proper dissolution cuts that off cleanly and saves money long-term.