Would like info on dissolving an S corp

In My Humble Opinion
1

First of all, yes I know I ultimately pay a professional for guidance; but I thought I’d start here and get some unofficial general council because taxes and corporations are not something I know anything about.

So my wife is a speaker and writer on the side. Last year she made less than $10K on this side gig. Because of some questionable advice she received; she created an S Corp. We’ve subsequently been told on more than one occasion, that probably wasn’t even necessary due to the small amount of income she makes on the side gig.

I’m thinking we should just dissolve the S Corp. We’ve done absolutely nothing with it since it was created 6 or 7 months ago. I suppose we can apply the $ she made to the company, but why? We’re paying taxes on it either way. I can dissolve it on Legal Zoom for about $120.

What am I missing? Is there a reason to keep it going? I don’t think it will ever be a full time gig.

2

Real-life legal questions are best started in IMHO rather than General Questions. Moved.

samclem, moderator

3

If it’s just you and/or your wife I don’t think you have to do much. When I left the state I incorporated in I didn’t see a point to doing the paperwork anymore. There was no debt, no contractual obligations to consider, and there was no official dissolution. My accountant had me sign just one more tax form to send to the state.

4

My wife does this stuff all the time in several states, but probably not your state.

In many but not all states if you don’t pay your annual renewal fee to the state agency in charge of corps, your corporation goes poof on the anniversary of its formation. After that time it’s illegal to do business as that name, illegal to have a bank account in that name, etc. So be ready for that.