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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I bought a distribution company back in 2006 and formed a S

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I bought a distribution company back in 2006 and formed a S Corporation. The business has not been in operation since 2007 as I sold it in May of 2007. I never disolved the business and still get federal and state tax stuff. I sent a letter to the federal side stating that the business was no longer in operation since 2007 so I would not be responsible for sending in tax returns...

My question is: if I never dissolved the S Corp can I use all of the current tax id numbers for both state and federal and restart this S Corp i started in 2006, as I am wanting to start a new business? If so what do I need to do from this point to make all of this happen?

MyVirtualCPA :

Thank you for your question, and thank you for using JustANswer.com

MyVirtualCPA :

Technically, as you never dissolved the corporation, it is still active and technically you could still use the old EIN for both companies. However, I would not advise this

MyVirtualCPA :

Particularly with an S Corp, because even if you have no income and no expenses, you're still responsible to file an S corp return annually

MyVirtualCPA :

the penalty for failure to file is $195 per month, per member

MyVirtualCPA :

All of a sudden starting to use that EIN again may trigger unwanted notices and give you headaches you don't want

MyVirtualCPA :

So, I would formally dissolve the old corporation and put it to rest, and open up a new business for your new endeavors

MyVirtualCPA :

Do you have any questions?

MyVirtualCPA :

If you have no further questions, please rate my response as "excellent" so that I may receive credit for assisting you today

Chris,

I see you were unable to join our chat. If you would, please take a moment to review my response. If satisfied, please rate as "excellent" so that I may receive credit for assisting you today. IF you need further assistance please reply below. Thanks again!
Customer: replied 3 years ago.
what do I need to do to dissolve the corporation and will doing that trigger any un wanted attention?
Dissolving the company should not trigger any unwanted attention -it's all done through your state. Plus, it needs to be done as the company is inactive and you don't want problems down the road.

To close out the business, file articles of dissolution. You can find them, HERE

Please let me know if you need anything else. If not, please rate my response "excellent" so that I may receive credit for assisting you today. Thanks again!
Megan C and other Finance Specialists are ready to help you
Thanks for allowing me the opportunity to help you. Please let me know if I can be of any further assistance to you in this matter. I really enjoyed working with you – please feel free to request me again when you come back to ask another question. Simply enter "MyVirtualCPA" in the subject of your question Thanks again for being a JustAnswer customer