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Background Domestic corporations (corporations created under the laws of New York State) must pay earnings franchise and other taxes to New York State. The corporation pays the earnings franchise tax in exchange for the benefit of exercising its business franchise, operating, employing capital, owning or leasing residential or commercial property, maintaining an office, or deriving receipts from activity in the state.
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The procedure of voluntary dissolution brings the presence of the corporation to an end, and removes the corporation's obligation to submit returns and pay taxes and charges to New York State in the future. The dissolution procedure includes both the Tax Department and the New York City Department of State. A domestic corporation that willingly liquifies does not end its responsibility to file returns and pay taxes and costs if it continues to carry out service, even if business is brought on totally outdoors New York State.
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Treatment for voluntary dissolution Voluntary dissolution is normally a two-step procedure: Obtaining written approval from the Tax Department1 (which will examine to see if the corporation owes back taxes and if it has filed all its returns)2; and Filing documentation with the New york city Department of State, consisting of a Certificate of Dissolution.