Good afternoon.   You should either just cease doing busines and let the corporation sit in its insolvent state or file bankruptcy.   What you do not want to do is actually dissolve the S Corp---the reason being is that when you dissolve a corporation, the dissolution documents that must be filed require that the owners represent that adequate arrangements have been made for the dissolving entity's debt. Representing this has the possiblity of opening up the shareholders to personal liability for the corporation's debt. You don't want that to happen.

I hope this has given you the guidance you were seeking. I wish you the best of luck!

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Expert:	LegalBeacon
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Accepts:	12025
Answered:	8/22/2009

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