I need to dissolve an owner's share in an IL S-Corp. Currently there are 2 owners. Would I still be able to keep the S-Corp with just one owner?
1 partner needs to dissolve their stake so the full company would be under my name. I live in CA and will be based there still. I am not sure how much business would still be in IL. Am I able to keep the S-Corp even though my IL based partner is no longer present and I don't live in IL? If I plan to do more work in CA, would I need to set up a foreign corporation in CA, or can it still operate as is? It is a national/global business. Is it better to just close the business and set up a new one with just myself as the owner?
As a business owner, I face similar issues myself. I'm sure you already know this but for something like this, you really should consult a lawyer and a tax professional. Having said that, the cleanest and safest way to do this would be to dissolve the current S-Corp and create a new one under a different name. This way there isn't any controversy over ownership. Hopefully you have a partnership agreement that covers the dissolution of your company. If not, you'll need one now. If you incorporate your own S corp in CA, you will have to register in IL as a foreign corporation. If you won't have a physical presence in IL, you will need a registered agent.
S-Corps often have only one shareholder. If you're not going to have many ties with IL going forward, and if most of your ties will be with CA, I'd dissolve the IL entity and form anew in CA. That way you avoid the hassle of double annual filings and double state taxes. Note: you'd likely still need to maintain foreign registrations if you plan to "do business" in other states. Just be aware that "doing business" means different things in different states. Please retain counsel if you have any doubt or questions.