Steve Sims EA llc


Announcements and Updates

Done with your business entity (Corporation, LLC, etc.)? You better shut it down or it will continue to cost you!

Minimum Franchise or Annual Tax ($800)

Your entity may avoid the minimum franchise or annual tax for current and subsequent taxable years if you meet all of the following requirements:

  • Timely file your final franchise or annual tax return, including extension, for the preceding taxable year.

  • Must cease doing or transacting business in California after the last day of the preceding taxable year.

  • File the appropriate documents with the SOS within 12 months of the filing date of your final tax return.

Closing a Business Entity

When a business entity closes and no longer does business in California they must terminate their legal existence here by dissolving, surrendering, or canceling their business. For complete information, get FTB Publication 1038, Guide to Dissolve, Surrender, or Cancel a Business Entity.

Watch this video Close Business Entity in California (2:21). 

How do I dissolve, surrender, or cancel my business entity?

Requirements for Franchise Tax Board

All business entities must:

  • File the final current year tax return. Check the applicable Final Return box on the first page of the return, and write "final" across the top.

  • Do not conduct business in California after the final taxable year.

 All tax returns remain subject to audit until the statute of limitations expires.

Requirements for Entities Registered with the California Secretary of State (SOS)

File the appropriate dissolution, surrender, or cancellation forms with the SOS within 12 months of filing your final tax return. To get the applicable forms, go to the SOS website at, and search for terminate entity, or call 916.657.5448.

Click here for more information:

For help closing your business entity contact me at: