We have owned and operated a small specialty retail business since 1985. In 1991, we incorporated as a C type, and did business under that entity. This year, with revenue falling and the costs of tax preparation for a c type corp running much more than we can afford, we decided to dissolve the corporation and return to sole proprietorship. There have been only two owners, myself and my wife. I am absorbing all the business debt along with the remaining inventory, to sell it on Ebay. Our bricks and mortar store closed 9/1/2007, and we've been operating online from home since then.
Are there any serious federal and state tax implications to dissolution and reforming as a sole proprietorship involving the value of inventory, equipment, etc? Are there any special or unusual steps for which I must pay an attorney? Our income is pretty restricted right now, and I'd prefer to do it myself if possible.
Are there any serious federal and state tax implications to dissolution and reforming as a sole proprietorship involving the value of inventory, equipment, etc? Are there any special or unusual steps for which I must pay an attorney? Our income is pretty restricted right now, and I'd prefer to do it myself if possible.