How to Dissolve a Business or Nonprofit

Dissolving an entity is the prudent thing to do when your company or organization closes its doors. Leaving an idle registration can mean continuing to file annual reports, pay franchise taxes, and file other tax returns.

Before filing an application for dissolution, an entity must be in good standing with the state. Any delinquent annual reports should be filed as well as any penalty fees owed. Once the entity regains good standing, the dissolution process can begin.

In most cases, dissolution applications are filed with the Secretary of State. Many states also require a tax clearance certificate from the Department of Revenue in order for the dissolution to be approved.

Click on a link below for information on how to dissolve an entity in your state.