If the client is no longer operating, you would do well to close the books and send in final tax returns indicating the closing of the business. You may want to dissolve the company under state law, but only for finality. You could file a bankruptcy case, but that will only stir up issues and will cost money, so there is no reason to do so, unless creditors are bothering you and you want to put an end to it, or unless there is some asset you want to not be responsible for. FIling will at least temporary pas the problem on to the trustee, who will eventually abandon the asset. As a practical matter, that should be the end of it, as non-bankruptcy lawyers don't usually understand what the abandonment of an asset in a business chapter 7 means. Cynical, but true advise.
Answered on Sep 14th, 2011 at 6:50 PM