How to Dissolve a 501c3 in Arizona: A Step-by-Step Guide

How do I dissolve a 501c3 in Arizona?
For federal tax purposes, you’ll need to file IRS Form 990 or IRS Form 990-EZ. You must include a completed Schedule N (Liquidation, Termination, Dissolution, or Significant Disposition of Assets), as well as copies of your articles of dissolution, proposal to dissolve, and plan of dissolution.
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There are some crucial procedures you must take in Arizona if you want to dissolve your 501c3 corporation. Dissolving a 501c3 includes a legal process that must be managed properly to prevent any financial or legal liabilities, regardless of whether your organization has completed its objective or you are experiencing financial difficulties. We’ll walk you through Arizona’s 501c3 dissolution procedure in this article and address some of your most important queries.

What distinguishes termination from dissolution?

Although they have different definitions, the terms termination and dissolution are frequently used synonymously. Dissolution is the legal process of winding down a corporation’s affairs, whereas termination refers to the process of ending a corporation’s existence. A corporation cannot be dissolved in Arizona unless it has been terminated. To formally terminate the corporation’s existence, this entails submitting Articles of Termination to the Arizona Corporation Commission.

If You Close My Company, Do You Have to Pay Corporation Tax?

If you have dissolved your corporation and haven’t submitted your last tax returns or paid any back taxes, you can still be liable for taxes. Companies must submit their final tax return to the Arizona Department of Revenue within 120 days following their dissolution. Taxes must be paid if you owe them in order for your corporation to be formally dissolved. Penalties and fines may apply if tax requirements are not met.

How does article termination work?

To formally end a corporation’s existence, an Article Termination must be submitted to the Arizona Corporation Commission. Name of the corporation, date of dissolution, and name and address of the individual filing the petition are just a few of the details that are included in the document. The corporation’s existence is formally terminated after the Commission accepts the Articles of Termination.

How Much Does it Cost in Arizona to Dissolve an LLC?

The price to dissolve an LLC in Arizona might change depending on a number of variables, including the intricacy of your LLC’s structure and the quantity of unpaid taxes and obligations. Articles of Dissolution must be filed for $35 with the Arizona Corporation Commission. For legal counsel and tax compliance, you might also have to pay extra expenses. It’s crucial to seek legal and tax advice before dissolving your LLC to make sure you adhere to all financial and legal requirements.

In order to prevent any legal or financial penalties, dissolving a 501c3 in Arizona entails a number of legal and financial factors that must be carefully addressed. You can make sure that your organization is dissolved legally and in accordance with Arizona state law by following the procedures described in this article. To make sure you follow all legal and financial requirements while dissolving your nonprofit, always seek legal and tax advice.

FAQ
Accordingly, how do i reinstate my corporation in arizona?

You can apply for reinstatement if your corporation has been involuntarily dissolved by the Arizona Corporation Commission by submitting a completed application for reinstatement, the necessary fees, and any unpaid taxes or outstanding annual reports. You can apply for reinstatement if your corporation was voluntarily dissolved within 120 days of the dissolution by submitting a completed application and the necessary expenses. You must submit a fresh corporation application after the 120-day window has ended. To help you reinstate your corporation in Arizona, it is advised that you speak with an attorney or a certified public accountant.

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