I am a lawyer in CT and practice in this area of the law.  If the sole owner dies, the next of kin (i.e. wife or children) may obtain the owner's interest in the compamny and may continue to operate the business.  the corporation is a separate legal entity and therefore, it continues to exist after the owner's death.  The company and the interest int he company is an asset of the owner's estate.  I suggest that you hire a lawyer to help assist with the transition of the company.  if the next of kin wants to sell the company and keep the profit once it is his/hers, they can.    however, the company's assets are not owned by the estate, but rather the coproration.