Inactive corporation

[nycCPA]

TP setup C-Corp in 07. We decided to keep activities off his on a Schedule C, so the corp is essentialy inactive. What are filing requirements for this?

[Zee]

According to the 1120 instructions (Who must file), all corporations (except those exempt under Section 501) must file an 1120 whether they have income, or not. I've generally just indicated zeros and attached a note that the corporation is "inactive". Keep in mind that the state requirements differ, and many have a franchise fee whether active, or not. So, it might be best to dissolve this corporation if there aren't any plans to use it. However, here's a link to an article suggesting that not dissolving may sometimes be a better idea if you're interested in reading it:

http://www.marketwatch.com/news/story/watch-your-old-business-accounts/story.aspx?guid=%7B636EEE60-55AD-451C-A673-9411C7E59134%7D

[BOB W]

I assuming it is a NYS corporation....So, if the corporation has NO assets the annual fee is $800 for a full year with some proration for partial year in existence. If the corporation has an average of more than a $1,000 in assets the fee could drop down to $325, I think, with a lesser fee for proration.

If you didn't file for an extention ( 3/15/08) you are already in trouble, assuming a calander year. These penalties can grow big.

[Zee]

I assuming it is a NYS corporation....So, if the corporation has NO assets the annual fee is $800 for a full year with some proration for partial year in existence. If the corporation has an average of more than a $1,000 in assets the fee could drop down to $325, I think, with a lesser fee for proration.

If you didn't file for an extention ( 3/15/08) you are already in trouble, assuming a calander year. This penalties can grow big.

Yes, several states have very high filing fees, even with no income. And, if it's a NV corporation the fees of the registered agent are also quite high.