The process of Legally Closing a Corporation in New York is called Dissolution.  After a New York Corporation has been Dissolved, it ceases to be Legally Active in the New York Secretary of State's records and may no longer Legally conduct business in the state of New York.

A New York Corporation is created when the NY Secretary of State approves the Formation Documents - Articles of Incorporation.  A record of the New York Corporation is added to the list of Corporations which have officially registered with the New York Secretary of State.  Once a Corporation is registered with the New York Secretary of State, that Corporation immediately has both reporting and tax obligations which incur penalties if the obligations are not met by the required deadlines.

If you've registered a New York Corporation with the New York Secretary of State and want to cease business activities you have to let the NY Secretary of State know that you intend to close your company.  Only after the NY Secretary of State has made sure that all of the obligations of the New York Corporation have been fulfilled will the Secretary of State approve of the closure of the company.

When the New York Secretary of State approves the closing of a NY Corporation, that New York Corporation is said to be Dissolved.  The process of Dissolving a New York Corporation is called New York Corporation Dissolution.

Before filing a Certificate of Dissolution with the New York Secretary of State a NY Corporation must obtain Tax Clearance from the NY Department of Revenue in order to determine that the New York Corporation does not owe any back taxes and has filed all its tax returns. Written consent of the New York State Department of Taxation and Finance must be attached to the Certificate of Dissolution for a NY Corporation when it is submitted to the New York Department of State for filing. Consent of the New York City Commissioner of Finance must be attached to the Certificate of Dissolution if the NY Corporation has done business in and incurred tax liability to the City of New York.

As soon as a New York Corporation is registered with the NY Secretary of State, that Corporation is responsible for recurring obligations of the New York Secretary of State and the New York Department of Taxation and Finance.  If a New York Corporation does not file its required reports or pay its tax obligations, then that NY Corporation could be responsible for penalties which compound as time goes by.

Unless you Dissolve (Legally Close) your New York Corporation with the New York Secretary of State that NY Corporation will be responsible for all recurring fees and penalties until the company has been legally closed.

New York Corporation Dissolution is one part of a larger process commonly called the "Winding Up" process.

There are things you need to do before you can request approval of Corporation Dissolution from the New York Secretary of State; and things that you have to do after the NY Secretary of State has approved Dissolution of the New York Corporation. 

When a New York Corporation is originally created, the Organizers may create Bylaws that define how the Corporation will be run.  The Bylaws may include pretty much anything that has to do with running the Corporation, including specific requirements which need to be followed before the Corporation may be Legally Closed.  Before you do anything else, you should review the Bylaws for anything that needs to be done before the Business is Legally Closed.

What you have to do both before and after the New York Corporation is Dissolved largely depends on how much stock, if any, has been issued and how much and what kind of debts and liabilities that the New York Corporation has.  If the New York Corporation has not commenced business then the NY Corporation Dissolution process is easier.

1. Hold a Board of Directors meeting and record a resolution to Dissolve the New York Corporation
   
   If a Board of Directors has been appointed for the New York Corporation, then the Board is required to adopt a resolution to Dissolve the NY Corporation.  There should be a majority of Board Members who vote Yes to Legally Close the company.  A formal date on which the Corporation will be closed should be specified.  Minutes of the meeting should be recorded and retained in the business records.  If the Board of Directors has not been appointed then the Incorporator(s) have to apply for Dissolution of the New York Corporation.
   
   We can transcribe and compile any minutes or approvals into a form that is legally recognized by the New York Secretary of State.
   
   
2. Hold a Shareholder meeting to approve Dissolution of the New York Corporation
   
   If a New York Corporation has issued shares of stock then a meeting of the Shareholders (owners) must be held and recorded. A majority of Corporate Shareholders must approve the Dissolution plan.  The approval actions should be documented and kept in the business records.
   
   If no shares have been issued then the New York Corporation Dissolution process is easier.
   
   
   If necessary, we can transcribe and compile minutes into a form that is legally recognized by the New York Secretary of State.
   
   
3. File all required Biennial Statements with the New York Secretary of State
   
   The New York Secretary of State will not approve the Dissolution of a NY Corporation until all required administrative reports have been filed.
   
   We can file any requiredBiennial Statements with the NY Secretary of State.
   
   
4. File all required tax returns with the New York Department of Taxation and Finance
   
   The New York Secretary of State will not approve the Dissolution of any NY Corporation until that Corporation has fulfilled all its tax obligations with the New York Department of Taxation and Finance.
   
   
5. Clear up any business debts
   
   All creditors of a New York Corporation should be given notice of the pending Corporation Dissolution. Each creditor should be given a mailing address to which they may submit claims as well as a deadline by which claims may be submitted.
   
   While the New York Secretary of State does not legally require the publication of a Notice of Dissolution of a New York Corporation, publication is a good way to notify anyone who might have a claim against the New York Corporation.  Evidence of publication might prove useful down the line if someone makes a claim against the NY Corporation after the New York Corporation has been dissolved.
   
   
6. Pay all taxes and administrative fees owed by the New York Corporation
   
   The New York Secretary of State will definitely not approve the Dissolution of a New York Corporation until all outstanding taxes and applicable registration and administrative fees have been paid.

1. Distribute all remaining assets of the New York Corporation
2. Close all business bank accounts of the New York Corporation
3. Cancel all local business licenses and permits
4. File Form 966 with the IRS
5. Cancel the IRS account associated with the NY Corporation's Federal Tax ID (EIN)
6. Keep Records of all Pertinent Business Documents

1. Distribute all remaining assets of the New York Corporation
   
   If the New York Corporation has any remaining assets, these may be divided according to the Shareholders' ownership interests in the NY Corporation. All distributions to Corporate Shareholders must be reported to the IRS.  Refer to the Corporation Bylaws for specific requirements, if any, for asset distribution.
   
   
2. Close all business bank accounts of the New York Corporation
   
   If there are any business accounts that have been opened for the New York Corporation then those accounts must be closed.  If any Corporate business accounts are left open there may be liability and obligations of the Dissolved New York Corporation which could lead to legal problems.
   
   
3. Cancel all local business licenses and permits of the NY Corporation
   
   If the New York Corporation has obtained any state, regional, county or city business licenses or permits, there may be cancellation requirements associated with those licenses or permits.  Each of those must be cancelled to avoid any reporting or fiscal obligations the New York Corporation may have.  This includes business registration licenses as well as reseller permits.
   
   
4. File IRS Form 966
   
   A Dissolved New York Corporations may be required to file IRS Form 966 with the US Internal Revenue Service.  This filing is required within 30 days after the final Dissolution plan is approved.  Filing IRS Form 966 lets the Federal Government know that the New York Corporation has been legally Dissolved so that it may take the appropriate actions.
   
   
   We can prepare IRS Form 966 for you to file.
   
   
5. Cancel the IRS account associated with the NY Corporation's Federal Tax ID (EIN)
   
   A Federal Tax ID, or Federal Employer Identification Number (EIN), is like a Social Security Number for the New York Corporation.  Once the IRS links an EIN to a New York Corporation, that EIN stays with the New York Corporation even after the Company has been Dissolved by the New York Secretary of State.
   
   When the IRS processes the final tax return for the New York Corporation, they automatically make the EIN inactive.  However, the account associated with the EIN is not automatically closed.  Closing the account associated with the EIN lessens the likelihood of any problems with the EIN account, or with the IRS, in the future.
   
   If you should decide to revive the New York Corporation down the line the IRS will reactivate the old EIN for your new Business.
   
   Before a New York Corporation can close an EIN account, it must be in Good Standing with the IRS.  The New York Corporation must have filed all required tax returns and paid any applicable fees and penalties due to the IRS.  The New York Corporation cannot close its EIN account until the IRS has received payment for any tax amounts the Company may owe.
   
   
   We can prepare the formal documents which you can sign and submit to the IRS in order to close the account associated with your EIN.
   
   
6. Keep Records of all Pertinent Business Documents
   
   In order to avoid problems down the line, you should keep copies of all tax filings, contracts and employment records on file as well as Certified Copies of all company documents filed with the Secretary of State.  This includes your Formation Documents - your original Articles of Incorporation and any Amendments - and all Dissolution douments.

You notify the IRS that your New York Corporation has been Closed on the final tax return that is filed for your Business. 

If you have employees and file taxes quarterly with IRS Form 941, Employers Quarterly Tax Return, check the appropriate box on that form to let the IRS know that your Corporation has Closed.  If you file yearly taxes do the same on IRS Form 944, Employers Yearly Tax Return. You should also attach a statement to the return showing the name of the person keeping the payroll records and the address where those records will be retained.

When you opened your New York Corporation you most likely were assigned a Federal Employer Identification Number (EIN).  Once the IRS links an EIN to a Corporation, that EIN stays with the Corporation even after the Company has been Dissolved.  If you don't plan to reopen your New York Corporation after it has been Closed, you should cancel the EIN account that has been assigned to your Company.

The time it takes to Dissolve a New York Corporation varies depending on how long it takes to complete the actions that are required in each specific case - holding meetings, closing accounts, distributing assets, etc.

The New York Secretary of State requires a Tax Clearance Certificate from the NY Department of Taxation and Finance before it will approve the Dissolution of a New York Corporation.

The time it takes the NY Department of Taxation and Finance to process a request for a Tax Clearance Certificate depends on the tax status of the New York Corporation. In some cases it could take 5-6 weeks to get a Tax Clearance Certificate from the New York Department of Taxation and Finance.

Once the initial actions are completed, the New York Secretary of State usually takes around 5-7 business days to process the Certificate of Dissolution.

Processing times for New York Corporation Dissolution filings vary depending on the work load of the Secretary of State's staff.  We've found that normal processing of New York Dissolution filings takes the state around 5-7 business days.

We are dependent on, and have no control over, the staff and systems of the New York Secretary of State or New York Department of Taxation and Finance. In our experience 5-7 business days is the time it usually takes the New York Secretary of State to process a New York Dissolution filing. We get your New York Corporation Dissolution filing to the NY Secretary of State as soon as possible after we receive your order. Once it is at the state we have no control over the New York Dissolution approval process.

The total cost to Dissolve a New York Corporation varies depending on exactly what is required for each specific NY Dissolution. We charge $249 plus any state fees for our New York Corporation Dissolution services. This includes:

• Same day processing
• Transcribe minutes of Board of Directors meeting which proposes Dissolution
• Transcribe minutes of Shareholders meeting at which Dissolution was approved
• Prepare and file Certificate of Dissolution with the New York Secretary of State
• Prepare US IRS Form 966 for you to sign and file
• Prepare documents to cancel Federal EIN account
• Certified copy of Dissolution filing from NY Secretary of State
• Priority Mail Delivery of all documents
• Unlimited Customer Support

We also offer these New York Corporation Dissolution services separately as explained below.

If there are Foreign Corporations in states other than New York that are tied to the Domestic New York Corporation then each of those Foreign Corporations must be Dissolved before the New York Corporation can be legally Dissolved.

A New York Corporation company name becomes available for anyone to use when the New York Corporation is Dissolved by the NY Secretary of State. There are no Corporation company name protections in New York once a New York Corporation has been Dissolved by the NY Secretary of State.

There are no state of New York requirements for the publication of a Notice of Dissolution of a New York Corporation.

While the New York Secretary of State does not legally require the publication of a Notice of Dissolution of a New York Corporation, publication is a good way to notify anyone who might have a claim against the New York Corporation.  Evidence of publication might prove useful down the line if someone makes a claim against the NY Corporation after the New York Corporation has been dissolved.