Hold a meeting with shareholders as the first step
The shareholders’ meeting is the first stage towards dissolving a S Corp. You must adopt a resolution to dissolve the corporation at this meeting. A majority of the shareholders must vote in favor of the motion.
Step Two: Submit Articles of Dissolution Articles of dissolution must then be submitted to the Ohio Secretary of State. The name of the corporation, the date of the resolution to dissolve, and the effective date of the dissolution must all be included in the articles of dissolution.
Step 3: Inform Debtors, Creditors, and Other Parties You must inform all creditors and other persons who could have an interest in the corporation of the dissolution after filing the articles of dissolution. Any state agency that the corporation has registered with must also be notified.
Step 4: Submit Your Final Tax Returns The Ohio Department of Taxation must receive your final tax returns before you may file them. Additionally, you will require tax clearance from the department. You cannot dissolve your S Corporation until the department has given you the go-ahead to do so.
The income that a S Corporation passes through to its individual shareholders is subject to taxation in Ohio. The shareholders’ individual tax returns disclose the income. What is the Ohio Cat Tax?
The privilege of conducting business in Ohio is subject to the Ohio Commercial Activity Tax (CAT). The tax is computed using taxable gross receipts from Ohio company operations. The majority of company models, including S Corporations, are covered by the CAT.
Unable to own another S Corporation, a S Corporation. Due to the fact that S Corporations can only hold one class of stock, owning another corporation would result in the ownership of multiple classes of stock.
The letter “S” in “S Corporation” stands for “Subchapter S,” the Internal Revenue Code chapter that controls S Corporations. S Corporations are a particular kind of corporation that have special tax status, preventing double taxation.
A limited liability company (LLC) is not a S corporation. A corporation that chooses to be regarded as a pass-through organization for tax reasons is known as a S corporation. The liability protection of a corporation is combined with the ease and tax advantages of a partnership in the flexible business formation known as an LLC.