I had formed an S corp in 1989 and had generated income until December 31, 2007. I have lost my only paying customer and know I will have NO INCOME this year 2008. Perhaps next year as well. Only expenses.

The S Corporation is registered in Texas.

For 2008 I have filed all quarterly reports with the IRS. I still have a bank balance.

Not knowing if I can generate new income I would like to keep the corporation "active" until I decide to close the business.

Would you advise to close the S Corp now? Can I continue for 2 or 3 years filing quarterly and annual reports with ZERO income? Can I claim expenses (i.e. travel expenses) with ZERO income? (2 shareholders only, husband and wife: would give loan to the S Corp)

What is the best way to go about this corporation now ? What will be the best way to minimize my costs? Is it worth for me to just dissolve it or leave it active? My main concern is what are the costs IRS will charge if I were to just dissolve the S corp?

Thank you very much for your help.

thanks