Non-profit business bankruptcy filing

[stevewiel]

What is the name of your state (only U.S. law)? California
We operate a nonprofit treatment program that is operating at a loss, has $60,000 debt (including some back payroll taxes), and has $20,000 cash that will last only another three weeks. We have given up hope of finding the additional revenue to keep us going. Do we have to file for bankruptcy or do we just shut the operation down and walk away? How do we file for bankruptcy and how long does it take?What is the name of your state (only U.S. law)?

 

[Some Random Guy]

Contact a local business attorney who can help you navigate through the best way to shut down the business. The answers will depend on how the business is incorporated, how much you owe in payroll taxes and who is owed the rest of the money.

You will probably want to spend that $20K on the payroll taxes since they don't go away with a business bankruptcy, but will attach to the persons who owned the business. If your payroll taxes are more than the $20K, you may want to contact a local tax expert (look for an Enrolled Agent) about an Offer in Compromise to get the IRS to accept less than the full amount.