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4 Replies Last post: Mar 5, 2009 12:26 PM by skydalimit

Keep S-Corp open or close it?

Jan 14, 2009 1:16 PM

Click to view Cheryann's profile Start-up Cheryann 1 posts since
Jan 14, 2009
I started a S-Corp 2 years ago. I am an independent consultant for the medical field. However, I recently had an opportunity presented to as that I couldnot pass up, but in order to take the opportunity, I had to take it as a full time employee. So my S-Corp is just sitting there for now. Is it ok to let my S-Corp sit as long as I continue to file and pay the necessary forms and fees for the government (just reporting zero income) until I this opportunity ends (1 yr or so) at which time I will resume working under the S-Corp? Or, is it better to close out the S-Corp and start all over when the time comes. I was hoping not to have to go through all of the start-up procedures again.
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Click to view Dereshki's profile Mogul Dereshki 44 posts since
Nov 29, 2007
1. Re: Keep S-Corp open or close it? Jan 14, 2009 1:24 PM
Hello
The better way is keeping it open. Because in the future if you want credit from vendor or other he can see you are in business more than 2 years.
Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
2. Re: Keep S-Corp open or close it? Jan 16, 2009 10:40 AM
Keep S-Corp open, Good luck with your new opportunity.

Once you have formed a Corp, it is easier to keep it open.

YES you have to file a Corp Tax Return yearly with no payment due to the I R S.

However you might have to pay the State a Minimum Tax.

Good luck, LUCKIEST
Click to view JDickinson's profile Start-up JDickinson 2 posts since
Jan 16, 2009
3. Re: Keep S-Corp open or close it? Jan 16, 2009 1:22 PM

I agree. Keep the S-Corp active by filing zero tax returns. If you live in a state with franchise taxes, you may have to pay this tax annually to keep the company active.

Janet
Click to view skydalimit's profile Mogul skydalimit 32 posts since
Feb 27, 2009
4. Re: Keep S-Corp open or close it? Mar 5, 2009 12:26 PM
you can keep it open just in case you want to go back to it, and if you dont want to start all over again, or you can sell it to these shelf aged corporation buying/selling firms. there's alot of business people that are looking to buy established aged shelf corps.

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