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Dissolving a corporation can be an extremely complicated process. For a corporation to be considered properly dissolved, the following steps are required:

* a formal corporate action

* a filing with the appropriate state offices

* a statutory notice to creditors

* processing of all creditor claims

* sale and distribution of all remaining assets

First, the corporation's board of directors has to meet and propose a corporate dissolution. Minutes of this meeting must be recorded by the corporation's secretary in the corporate book. After this has occurred, a majority of shareholders must approve the board of director's proposed dissolution action. The corporation is then required to file IRS Form 966 within 30 days after the adoption of a plan or resolution to dissolve the corporation. Also read Dissolving a Corporation: Necessary Legal Steps for more helpful pointers on this topic.

State laws vary, but some states require approval by at least two thirds of all voting shares of the projected corporate dissolution. Read The Shareholders of a Corporation for some good advice on shareholder rights and responsibilities. In a number of states the corporation must file a Statement of Intent to Dissolve before initiating the closing stages of the procedure. Creditors must be advised of the imminent dissolution at this point, payment should be made to creditors, and the remaining assets are dispersed among the shareholders. After this, the corporation is required to file Articles of Dissolution.

Some states require tax clearance,