S-Corp Final Return Questions

[geekgirldany]

Client has an S-Corp that was active for many years. It was paid on commission. In 2013, he got a job and "closed" the s-corp. Basically the business still received a few final commission checks throughout the year but it was basically a closed business. I have a couple of questions.

He/Scorp received a $200 final commission check in January 2014. He did leave the S-Corp bank account open to pay for any final expenses at the end of the year. I wanted to do a final return for the S-Corp for tax year 2013. Is there a way to report the $200 without having to do a S-Corp return for 2014? I thought about reporting on Schedule E, Page 2 in some manner but unsure.

Also my client would like to keep the name of the S-Corp as he believes he will in the future be able to restart the business or use it for another business. This would be several years down the road. Can he keep the name current with the State of Georgia? Usually papers are filed to dissolve it. So I am unsure how this would be done.

Thank you for any help
Dany

[Gretel]

Assumed biz name

In MT one can file with the Secretary of State to protect a name for 5 years. This is independent of filing for the business entity and done to protect the name while thinking about doing business.

I don't think I would resolve the corporation. If all the corporation has is the annual filing fee with the State (he can pay personally), I don't think a tax return is required other than writing on the front page "no business activity". I am not sure either about the $200 if corporation is resolved. If not, a 2014 tax return will be required.

[Super Mom]

In NC, as long as the business is showing active with them, the NCDOR will want a return, one of my clients had to file for like 2 weeks all the way back to 2007 with franchise taxes and penalties. NCDOR didn't bother sending a letter until like 2012!

[geekgirldany]

I am still trying to figure this out. I may have to call the Scretary of State. I know Georgia has a name reservation application, but I believe that is used before you incorporate to reserve the name.

Still wondering about the $200 he received in 2014, if he will have to file a tax return.... I am guessing yes.

Most of the time Georgia will do an administrative dissolving if the fees are not paid every year. I am sure if you are paying them, they would wonder where a corporate return was at.

[Roland Slugg]

If the corp was dissolved by 12/31/2013, or even if it wasn't but won't have to file a 2014 return, I'd be inclined to mark "Final" on its 2013 return. Then in 2014 I would just report that $200 on the s/h's own return, on Schedule C-EZ, along with whatever final expenses he pays, if any.