I have a C Corporation and need info plz ... anyone?

[Kento-Moto]

Way back in 1995 my accountant set up my Janitorial service as a C Corp. He has since closed his business and I have been using another accountant for the last 10+ years. We continue to file taxes as a C Corp, I have recently resigned as president and need to know how to make sure it is all legal and I am off the books completely as of May 1st 2011.

Do I need an attorney?

any comments are appreciated.

- Kento

 

[Commuta_Busa]

I would retain an attorney and their services for something like this. You wouldn't want to be held liable for something down the road.

 

[skydivr]

If you are resigning, what has happened to the business? bought out? abandoned? Who are the shareholders?

If you are closing it, then you need to file your final year of returns, and have the corp dissolved with your states Secretary of State.

 

[twotonevert]

Wish I knew for sure, I had an S corp for while and we had to completely dissolve it. You dont need an accountant, find a good tax advisor. That is who helped me.

 

[rubbersidedown]

Hoping all the best for you Bruddah.

RSD.

 

[Kento-Moto]

If you are resigning, what has happened to the business? bought out? abandoned? Who are the shareholders?

If you are closing it, then you need to file your final year of returns, and have the corp dissolved with your states Secretary of State.

For now, the Business will continue to operate, it owes me $30K in loans and another $40K in back income... it is doing poorly so I am esentially giving it to my partner, I am walking away and just dont want to be liabel for anything in the future.

 

[Kento-Moto]

Hoping all the best for you Bruddah.

RSD.

Thank you Sir, income is very weak right now but I am hoping for a turn around soon.

 

[Twobrothersbusa]

For what it is worth, my wife is a CPA and immediately said lawyer. It comes down to you giving up your shares in the company. A lawyer would draft up the documents to do what you are asking. An accountant would put in on your tax return.

Good luck.

Way back in 1995 my accountant set up my Janitorial service as a C Corp. He has since closed his business and I have been using another accountant for the last 10+ years. We continue to file taxes as a C Corp, I have recently resigned as president and need to know how to make sure it is all legal and I am off the books completely as of May 1st 2011.

Do I need an attorney?

any comments are appreciated.

- Kento

 

[Lycan]

Yup lawyer...and THEN the accountant to shed the liability come tax time...sorry its not doing well keep your chin up my friend...another good opportunity will arise.

 

[skydivr]

I then assume you are also shareholder? Then regardless of the resignation, you still have an issue, even though it's a C corp. Yes you need a lawyer/Tax Accountant.

Question is, how bad do you want your money from the Partner? Resign, sell your stock to the partner for the amount you are owed (ONLY WAY YOU are totally free and clear of the Corp UNLESS you personally guaranteed anything - better check!) and have the partner sign a personal note for it (the stock) - that way you have broken the 'corporate veil', and if the partner doesn't pay you by the terms of the personal note, you could take action against the partner for the balance. However, in most instances such as this, unless something big happens, the Partner will eventually fail, and he will file BK (you lose) or you will have to sue him for it (you still lose).

It may be that the business can make money by cutting out the payroll/costs for two owners vs. one - and maybe then the partner could pay you some of what you are owed via the note. You might get lucky but the odds are certainly against it.

Best of luck

 

[Kento-Moto]

Thanks everyone, I will consult the atty.