C corp liquidating distribution

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This type of corporation requires special organization and operation to adhere to state and federal laws and regulations.

Cash liquidation distributions are usually considered a nontaxable return of principal.Informing the state government also ensures that creditors know that the corporation will no longer incur debt.Follow specific laws of your state to file a dissolution notice – expect to fill out paperwork.Record the vote for dissolution formally in the minutes of the shareholder meeting. Inform the office of the Secretary of State in your state of the dissolution of your business.This ensures that the authorities no longer hold the corporation liable for business taxes.

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