Can I close my entity without filing taxes first?
You can close an entity on OtoCo without filing taxes first — but doing so carries real compliance risk.
What OtoCo requires at close
For U.S. entities (Delaware / Wyoming), the Manage tab asks you to confirm:
- You have filed all required IRS annual compliance forms, or
- You explicitly accept the risk of closing without that confirmation
Use the link to open Tax Center first if you still need to file.
Why filing matters before close
- Form 5472 / 1120 (single-member) or 1065 (multi-member) may still be due for the partial year before dissolution
- The IRS can assess penalties for unfiled information returns — up to $25,000 per form per year for Form 5472
- Closing on OtoCo does not notify the IRS — federal filings are a separate obligation
Closing is permanent
Closing transfers your Entity NFT to a dead address. You cannot renew, bank, or file taxes through that entity on OtoCo afterward. See Close entity process.
Recommended order
- File pending Tax Center returns
- Withdraw funds from entity wallets and bank accounts
- Export documents from Files & Templates
- Close from the Manage tab
Guide: Close Entity