Wednesday, March 11, 2009

How things change…

My client is having money troubles and will be letting go most of its contracted labor. I’ve in turn decided to close my “business” because there is too much time and cost involved.

So once March is over, I will have started a business, finished a year’s worth of taxation, and closed down a business in around a year. Running a business as a s-corporation is quite a bit of work, so I’m glad in a way to stop.

What I see is involved so far:

– Submit a dissolve notice to Illinois. Costs $100 for that pleasure…
– When submitting 941s and such, most should have a “final payment” option to select.
– Will still need to do next business taxes at the end of 2009. (Edit: In retrospect, I should have filed 2009 business taxes within 90 days of closing the business. This comes back to bite me as you will find out at the end of this book.)
– Cancel as many ongoing expenses as I can until I find a job.
– Retire my business number with the IRS (Edit: You don’t need to bother doing this as far as I can tell.)
– Close my two business bank accounts (still need them to take/receive tax money at the end of the year, so I will be keeping them for quite a few years just in case).

Probably a lot more to this, but I have not done much research yet.

I plan on still doing side business work whenever I can. I’ll just do it as myself and not an LLC. It should be a lot simpler… Although if I do any extra work in 2009 it will make my taxes a big pain I imagine. (S-corp stuff, K-1 stuff, 1040 Schedule C).

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