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You must file Form 966, Corporate Dissolution or Liquidation, if you adopt a resolution or plan to dissolve the corporation or liquidate any of its stock.

You must also file your corporation’s final income tax return. Remember to check the “final return” box, which is near the top of the front page of the return, below the name and address.

For a C corporation you must:

• File Form 1120, U.S. Corporate Income Tax Return, for the year you close the business.
• Report capital gains and losses on Schedule D (Form 1120).

For an S corporation you must:

• File Form 1120-S, U.S. Income Tax Return for an S Corporation for the year you close the business.
• Report capital gains and losses on Schedule D (Form 1120-S).
• Check the "final K-1" box on Schedule K-1, Shareholder's Share of Income, Deductions, Credits, Etc.

Regardless of the type of corporation, you may also need to file these forms when you file your Form 1120 or 1120-S:

• Form 4797, Sales of Business Property, for each year you sell or exchange property used in the business. You also need to file this form if closing your business causes the business use of an eligible property under Section 179 to drop to 50% or less.
• Form 8594, Asset Acquisition Statement, if you sell your business.