Dissolution and Withdrawal
Close Your Entity Registration With the State
- Order online and get started in minutes
- Enter information once and skip the paperwork
- Starting at $399 plus state fees
Easily Complete the Dissolution and Withdrawal Process
When it comes time to end activity in another state, withdrawal is the proper way to wind down operations. Doing so eliminates the risk of accruing penalties, having ongoing obligations to the states, and facing costly reinstatement fees should you choose to resume operations in the future.
Generally, withdrawal (also called cancellation in some states) refers to closing registration in a state other than the state of formation. Dissolution closes the entity in the state where it was formed. Simply let us know where you want to close your entity registration, and we’ll complete the appropriate filings for that state.
Shutting down an entity registration is complex. Failing to follow the correct process can add months to the timeline. Don't spend weeks or months researching requirements and filing with multiple government agencies. We'll prepare the necessary forms and provide instructions on obtaining tax clearance if needed to close your registrations.
Minimize Your Time Investment
When it comes to closing entity registrations, completing the forms is the easy part. Researching the requirements, submitting the forms properly to the right agency and in the right order, monitoring them for approval, and following up is where the real effort is spent. If the process is not completed properly, this seemingly simple project can take months if not over a year. We complete each step so you can achieve the best outcome in the least amount of time.
Tax Clearance Support
Many states require official notice of tax clearance from their department of revenue before dissolution or withdrawal can be approved. Since these departments only communicate with taxpayers and their tax preparers, we provide you with the information needed to pursue tax clearance on your own.
How Dissolution and Withdrawal Service Works
Complete the steps below to order withdrawal service. Your compliance specialist will complete the required filings. Your filings will be submitted and tracked until approval is granted.
- Provide basic information about your organization.
- We identify the steps necessary to withdraw your entity, invoice applicable filing fees, and file the withdrawal paperwork. Any required back-due filings, such as annual reports, are billed separately.
- Receive your approved certificate of withdrawal.
Answers to Frequently Asked Questions
What is withdrawal?
Generally, withdrawal (also called cancellation in some states) refers to closing registration in a state that is not the organization's original state of formation.
Why do organizations need to withdraw entity registrations?
Organizations that no longer provide service or fundraise in a state may allow their legal registration to lapse. Lapses often cause an organization to lose good standing. These nonprofits may be subject to state taxes and penalty fees. Filing withdrawal paperwork with the state closes your organization's registration. Withdrawal reduces your risk of penalties as you wrap up affairs in that state.
Why do organizations need to dissolve entity registrations?
Organizations file dissolution paperwork to cleanly wind down their corporate registration, reducing the risk of penalties. As organizations cease operations, often the last thing on their mind is filing dissolution paperwork with the state. As a result, many entities are administratively (or involuntarily) dissolved by the state for failure to maintain good standing or to keep up with compliance requirements. Those involuntarily dissolved often face state penalties, and the owners face a loss of liability protection. Entities that are not in good standing also run the risk of default judgment in court.
Does a dissolution or withdrawal filing end an organization's obligation to file state charitable registration renewals?
No. While the process to complete the obligation to file charitable registration renewals varies in each state, typically, the organization must be current in its reporting. It must submit past filings, documents, and reviewed or audited financial statements before the state can close the registration. Depending on the date activities ceased, the state may require a final renewal, Form 990, and financial statements for that tax year. The organization must then submit a signed, dated statement that it no longer operates or solicits in the state. The statement must include the date that the activity ceased and must specifically request the organization's registration be closed.
What is tax clearance?
Many states require official notice of tax clearance from their revenue department before a withdrawal is approved. We will provide you with the appropriate information to contact the revenue department should a tax clearance certificate be necessary for your withdrawal.
What are back-due annual reports?
Organizations must provide reports, generally each year, to the Secretary of State in each state where they are registered. States require organizations to catch up on overdue annual reports from prior years before allowing withdrawal. We can complete any back-due annual reports that the state requires you to submit.
What is the difference between withdrawal and dissolution?
The term "withdrawal" typically refers to organizations winding up affairs in a foreign state, meaning a state other than a home state. If your organization seeks to wrap up matters in its home state, it must "dissolve."
Comprehensive Support for Your Compliance Needs
Gain peace of mind and return to your mission-driven work. Leverage our comprehensive compliance services today.
|Raising funds in multiple states?
Rely on us to manage your charity registrations.
|Registering to operate in a new state?
Turn to us to manage your foreign qualification project.
|Tracking annual report deadlines?
Allow us to track, prepare, and file your annual reports.
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