Though it can be a challenging choice, closing a nonprofit organization occasionally becomes essential due to a lack of financing or other factors. There are particular procedures that must be followed in Florida in order to formally dissolve a nonprofit organization.
1. Board Approval: Getting the board of directors’ blessing is the first step in dissolving a nonprofit organization. Both a board vote and written consent are acceptable methods of accomplishing this. Both the decision to dissolve the organization and the strategy for allocating any leftover assets must be approved by the board. The following step is to file Articles of Dissolution with the Florida Department of State.
2. File Articles of Dissolution. You can do this via mail or online. The name of the nonprofit organization, the dissolution date, and a statement that all debts and obligations have been paid in full or will be paid in a reasonable amount of time must all be included in the Articles of Dissolution. 3. Notify the IRS: The IRS must be informed of the dissolution if the nonprofit organization is listed with them as a tax-exempt entity. Filling out Form 990, Return of Organization Exempt from Income Tax, and marking the box indicating that it is the final return are two ways to accomplish this. 4. Distribute Assets: Any assets that remain after all debts and obligations have been satisfied must be given to a different tax-exempt organization or to the state of Florida. The board of directors must approve the asset distribution strategy and incorporate it in the articles of dissolution.
An LLC ceases to be a legal entity after being dissolved. This does not imply that the LLC’s owners or members are exempt from all obligations or liabilities, though. For any debts or liabilities that were incurred while the LLC was still in existence, it is still possible to sue a dissolved LLC in Florida.
Any assets that remain after a company is dissolved in Florida must be allocated in accordance with its bylaws or articles of formation. If the articles of incorporation or bylaws don’t specify how the assets should be allocated, state law will be applied. Can I File a Claim Against a Bankrupt Company?
You might still be able to collect damages if you have a claim against a dissolved business. If a claim arises before the date of dissolution, a claimant in Florida has five years from the date of dissolution to file a lawsuit against the corporation.
In Florida, shutting a single proprietorship is more easier than closing a nonprofit or a corporation. The lone proprietor need just make good on any unpaid bills and submit a final tax return to the IRS. Any assets owned by the sole proprietorship may be sold or divided in any manner the owner chooses.
Florida LLC tax filing is a distinct procedure that has nothing to do with dissolving a charitable company. However, Florida LLCs must submit an Annual Report and a yearly fee to the Florida Department of State. In addition, depending on the structure and classification of the LLC, federal and state income taxes may apply to it. For help with LLC tax filing in Florida, it is advised to speak with a tax expert or accountant.