Illinois has a franchise tax, but it's much lower. It's 0.001 X the paid in capital in the corporation. An $800 tax would be the equivalent of $800,000 in paid in capital. Somehow I doubt you're anywhere near that number. Regardless, you may be better able to sleep nights if you file bankruptcy on the business.
The problem that most small business owners confront is that if there are any problems at all with the bankruptcy petition
, then the business owner must hire an attorney to represent the corporation, because under federal law, a corporation must be represented by an attorney in bankruptcy court
. This makes the cost of a simple Chapter 7
bankruptcy very expensive. There are ways to get around this, but only if no creditors complain about the bankruptcy. Before you make a decision on whether or not to just close the doors, or file bankruptcy, you probably should get a local consult with a bankruptcy lawyer, so that you can lay all of your "financial cards" on the table in a confidential setting. But, if you combine your meeting with your personal bankruptcy
issue, you may be able to get a free consult, because bankruptcy attorneys don't generally charge for a first consult on a personal Chapter 7 or 13 -- but they do charge for a business Chapter 7 or 11 first consult.
Hope this helps.