Closing a California business entity?

• Position: FTB news - Brief article

Here are the steps to dissolve, surrender or cancel a business entity:

* File delinquent tax returns.

* File the final/current year tax return. On this tax return's first page, write "FINAL" at the top of the page and check the box labeled, "Final Return." (Exception for a nonprofit tax-exempt church or tax-exempt corporation: These organizations do not have to file a final tax return if its three-year gross receipts average is under $25,000. A final tax return must be filed if the gross exceeds this average, if the organization is a private foundation, or if the organization has non-member or unrelated business income.

* Pay all tax balances, including any penalties, fees and interest.

* Do not conduct or transact business in California after the final taxable year.

* File the appropriate dissolution, surrender or cancellation...