Business & Corporate Dissolutions
How to End Your Business
There are a few ways to dissolve a business. Either you are in a dispute and have to go through a lawsuit/judicial dissolution. If your dissolution is disputed, our experienced business litigation and trial attorneys can help you get the result you desire. If the dissolution is amicable, here are the steps necessary to end the business.
Closing a corporation is commonly known as “dissolution.” Just as a company files Articles of Incorporation when starting a business, so too must Articles of Dissolution be filed when closing a business. Ending a business is no quick and easy matter. Dissolution requires strict adherence. Typically, there are six steps required to dissolve a business entity:
Step 1: Obtain the Consent and Approval of Company Owners. Call a board meeting. The bylaws of a corporation or the LLC operating agreement ordinarily outline the dissolution process and the proper method to obtain approval.
Step 2: File the Dissolution Certificate. Certificates must be filed in the state of incorporation. If the company is registered to transact business in another state, a certification must be filed in that state as well.
Step 3: ObtainFederal and State Tax Clearance. Certain tax obligations remain after a business has dissolved. The IRS and the state in which you operate have requirements to formalize the closing of operations. You must notify the IRS of the dissolution and pay any taxes due. Be sure to consult your accountant.
Step 4: Notify Creditors You Have Dissolved the Business. Notification must be made by mail and must include information about submitting claims. Some states require notice by publication. Consult an attorney in your state for notice requirements.
Step 5: Settle All Claims Submitted by Creditors. A competent attorney can help assist you on the consequence of rejecting claims.
Step 6: Distribute any Remaining Assets to Company Owners. Assets are generally distributed according to the proportion of ownership interests.
NOTE: Business should remember to close any open lines of credit, service accounts and terminate licenses.
Get Help To Dissolve Your Business
Given this step-by-step process, it is not uncommon for dissolution to take months to complete. In order to swiftly execute this complex and lengthy process, business owners should contact a competent business attorney early to facilitate their dissolutions.
Call for a Consultation With an Irvine Business Law Attorney
Whether you are dissolving your business amicable or are in a dispute, our business attorneys and trial specialists can help you navigate all the options and complexities and act immediately. Call us today at 888-809-1235 or 714-406-4595 or contact us online today to speak with a business law professional who can assist you. We offer competitive rates, and for your convenience, evening and weekend consultations by appointment. Se habla español.