At Ownr, we help people start their businesses, but it’s true that sometimes folks need to move on from what they’ve started. Perhaps they’ve incorporated, but never really got your business off the ground, or maybe the business is no longer viable. It can be a change in interests, or maybe the business owner is retiring and doesn’t have a succession plan. Whatever the reason, business owners sometimes find themselves in the position of wanting to close up shop.
If you’re in this situation and your business is incorporated, you have the option to dissolve it. However, there are some good reasons to keep your corporation, even if you’re closing down your current business.
Dissolving a corporation is a legal process in which the corporation, as a legal entity, ceases to exist. An inactive corporation may just sound like a corporation that isn’t currently being used, but in legal terms, it refers to a corporation that has ceased business operations but continues to exist as a legal entity.
While there is some upkeep involved in maintaining an inactive corporation, such as continuing to file your annual return and tax return even if you aren’t generating revenue, but there are some real benefits to consider.