There appears to be mixed facts:
- An S corporation certainly can continue to operate with just one shareholder
- If that is the case, then there is no liquidation.
- If you do not want to continue in the S corporation entity structure, and operate as a sole proprietor, then you have the liquidation as discussed above.
- You are getting mixed signals because the facts do not appear to be consistent
- You need to determine what entity structure bests suits you and the business.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
