Saturday, May 23, 2009

Winding Down.

I’ve started taking care of various aspects of winding down the business. While I’m not currently sure I know everything I need to do, I have a general idea.

1.I dissolved the LLC by submitting a LLC-35.15: Articles of Dissolution at the cost of $100. I needed to do this before my 1 year anniversary, or the LLC would not be in good standing. What exactly that would mean, I don’t know. To “renew” the LLC would have cost $250, and with limited funds, closing the LLC seemed like the best option. I received a confirmation letter in the mail a few days later.

2.I received a notice from my self-employed 401k that I might need to submit a IRS 5500 (EZ in my case). Reading through the instructions It looks like I don’t need to unless the collected amount in the retirement fund is over $250,000. So luckily, it looks like I can leave that as-is.

3.I ended up closing my HSA account a while back. Come tax time I’ll probably have to pay tax on that money. It wasn’t much, so probably only $40 or so.

4.This time I have to make certain that when I file taxes I select “this business is closing” options in all the tax forms. I assume the s-corporation tax return form has something for that. Not looking forward to that stuff. Tax programs are not cheap. (Edit: as I mentioned before, I should have filed 2009 business tax forms within 90 days of closing.)

5.I need to keep my bank accounts active until tax time as well as my IRS tax ID.

6.I lucked out by electing to be taxed as an s-corporation. I am currently getting unemployment from the state because I was paying in unemployment on myself. If I had not been taxed this way, I would have had a difficult time as I would have paid higher self-employment taxes and had probably no money at all coming in. These two points make it very very much worth the extra hassle.

Comments are closed.