Day: December 8, 2021

So how do you dissolve an S-Corporation?

Ending your business is an unfortunate experience. Every entrepreneur fears their venture failing. Even if it was thriving before, your business model might be outdated. A sole proprietorship can only go so far. But even with a solid core of partners, coworkers, or employees, termination could be your company’s ultimate fate. So how do you dissolve an S-Corporation? 

Why Does This Become Necessary? 

Even though your S-Corporation has gone under, you’re still on the hook. The IRS will still demand you pay your fair share. Thus, you must inform the IRS and your relevant state authorities of the situation. Otherwise, you’re obligated to file inactive business annual reports with the state. Beyond that, you are required to continue filing tax returns and submitting them to both state and federal authorities. Maintaining your business license is also essential, but all of these steps come at a cost. Since you are not generating any more revenue from your business, it’s time to cut ties. Continuing to pour money into it is a losing battle.

How Do I Know When It’s Time? 

Terminating the business as early as you can (once you know you are going to fold, that is) is the best move you can make. Complete the process by the end of the tax year. Suppose this scenario unfolds at the start of your tax years. In that case, there is a deadline for your paperwork. This deadline falls on the 16th day of the third month within your relevant tax year. But if it is at some other point, you can choose any date you want to declare your S-Corporation as defunct. That said, send all of your related documentation to the IRS before this date arrives.

So How Do I Do It?

The first step in this process is to find your Articles of Incorporation. This document is the one you sent to the state when you first opened your business. As you read it again, keep an eye peeled for the language describing the dissolution of the S-Corp. After that, initiate proceedings to dissolve the LLC or corporation. Co-owners and other shareholders must vote on this matter, as well. Be sure to record the outcome of the vote in the meeting minutes or draw up a written consent form. In other words, put it down in writing. The Articles of Dissolution (or Certificate of Termination) kick in at this point. Send these forms with the Secretary of State serving your state. There is more to it, but we will have to explain more later! 

Trust the Professionals at the Harding Group

Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for consultations and strive for open communication with our clients. 

Are you interested in business advising, tax preparation, bookkeeping and accounting, payroll services, training + support for QuickBooks, or retirement planning?  We have the necessary expertise and years of proven results to help. 

We gladly serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of tax time, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on FacebookTwitterYouTube, and LinkedIn

The post How Are You Supposed to Dissolve an S-Corporation? appeared first on The Harding Group.

Did you miss our previous article…
https://www.digital-accountants.com/?p=591

Aw, better luck next time, GTers. Maybe some good news on Dec. 17? Anyway, here’s what Grant Thornton sent out on Dec. 1:

Grant Thornton has further embraced the changing nature of benefits by taking its traditional benefits package — which includes items such as retirement plans and medical insurance — and layering on a host of newer offerings, including:

Flexible work arrangements such as reduced-work schedules, compressed work weeks and flexible days — regardless of level;Flexible time off that allows employees to disconnect from work as needed instead of tapping into a predetermined set of paid days off;Expanded family-care benefits, including enhanced parental leave and access to childcare, eldercare, pet care, meal planning, housekeeping and other resources to support quality of life;Subsidized meal-delivery services;40 hours of chargeable time annually to engage in volunteer activities;Flexible career-development and learning opportunities that work with people’s real-world schedules;Quiet hours and other measures to reduce the fatigue of video conferences and remote work;Lifestyle accounts that offer reimbursement for wellbeing expenses, such as fitness equipment purchases.

Further, Grant Thornton believes that offering ample and forward-thinking benefits also means doing so affordably. For this reason, the firm is absorbing employee premium increases for its medical benefits for the 2022 calendar year.

GT did an OK job of spreading the wealth around last summer, and now we have these enhanced benefits which Mike Monahan, national managing principal of people and community, said creates “total wellbeing across multiple dimensions: emotional, physical, career, social and financial.”

Will last summer’s raises and these new souped-up benefits keep GTers from leaving for the Big 4 or industry? Who knows. But if employees are planning on handing back their purple roses next year, giving them a mid-year salary adjustment before Jan. 1 would at least give them a third reason to stick around.

Related articles:

Compensation Watch ’21: Grant Thornton Is Dragging Its Feet On Announcing Mid-Year Raises

Compensation Watch ’21: Did Grant Thornton Give Employees Briefcases Full Of Money This Year?

The post Grant Thornton Is Trying to Keep Heinies In Seats By Giving Raises Enhancing Benefits appeared first on Going Concern.

Did you miss our previous article…
https://www.digital-accountants.com/?p=585