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Shutting Down Your C Corporation? Here’s What You Need to Know: If you are approaching corporate liquidation, there are several tax implications that you need to be aware of. Complete liquidation of a C corporation is when it ceases to be a going concern, winds up its affairs, pays its debts, and distributes its remaining assets to the shareholder(s). In tax terms, the corporation redeems all its stock, and during the redemption, there can be one or more distributions pursuant to a plan. Though not mandatory, it’s prudent to have a written plan that establishes a precise date for the start of the liquidation process, marking the difference between regular dividends and liquidating distributions. Your corporation can achieve liquidation in three ways: Distribute all of the corporation’s assets to the shareholder(s). Sell all its assets and distribute the proceeds. Sell some assets and distribute the resulting sales proceeds and unsold assets. #businessaccounting...