I need to dissolve an owner's share in an IL S-Corp. Currently there are 2 owners. Would I still be able to keep the S-Corp with just one owner? 1 partner needs to dissolve their stake so the full company would be under my name. I live in CA and will be based there still. I am not sure how much business would still be in IL. Am I able to keep the S-Corp even though my IL based partner is no longer present and I don't live in IL? If I plan to do more work in CA, would I need to set up a foreign corporation in CA, or can it still operate as is? It is a national/global business. Is it better to just close the business and set up a new one with just myself as the owner?
As a business owner, I face similar issues myself. I'm sure you already know this but for something like this, you really should consult a lawyer and a tax professional. Having said that, the cleanest and safest way to do this would be to dissolve the current S-Corp and create a new one under a different name. This way there isn't any controversy over ownership. Hopefully you have a partnership agreement that covers the dissolution of your company. If not, you'll need one now. If you incorporate your own S corp in CA, you will have to register in IL as a foreign corporation. If you won't have a physical presence in IL, you will need a registered agent.
Answered 8 years ago
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