How to Dissolve a Business in CA:
Our Attorneys Can Help with Closing California LLCs & More.Step 1: Build Your Team of Advisors
Selling a business involves many complex financial and legal processes that even the most experienced entrepreneur may be unable to handle — especially when dealing with a big company.
So, one of the smartest moves you can make when you decide to leave your business is to assemble a team of trusted professionals who can guide you through each stage of the sale. Of note, a skilled California business attorney can handle all legal aspects of the business sale, from drafting contracts that protect your interests to addressing compliance issues. Attorney expertise can prevent costly legal missteps!
Notify State & Local Authorities
When you started your business, you had filed your articles of incorporation with the state of California. Also, you sent them annual reports and paid taxes accordingly. When you shut down your business, it is important to:
- Fill out all the necessary forms both at state and federal level
- Notify the state that your business is closing
- Follow the IRS guidelines for alerting it of the dissolution
- Make sure your business will not be longer liable for filing taxes and reports
There are many opportunities for error when filing all the forms, which could prolong the dissolution process or attract lawsuits. We will support you in the process, and complete the forms together, making sure these comply both with the law and with your company’s particular situation.
Selling your business? See why business valuation is an important first step in this guide for California business owners.
Winding up the Business
Our counsellors will help you in paying all your debts, then in paying yourself and/or your business partners, and also in notifying all interested parties about the dissolution. Steps to take can involve:
- Informing employees and initiating layoffs, if it is the case
- Informing potential creditors of an impending closing
- Informing lenders, insurers, suppliers, vendors, and service providers to terminate those contracts
- Paying all the valid current debts and compensations to employees and creditors
- Distributing the remaining business assets to the owners/shareholders, as stated in your organizational documents.
Terminate business licenses & foreign registration
- Does your business own any license or operational permit? The tax agency or the licensing agency also need to be notified about the dissolution.
- Does your business have a foreign registration with another state? The state authorities need to find out about the business closing too.
In both cases, additional forms and steps need to be taken, and we can do them for you simply and effective.
Do I Need an Attorney to Sell My California Business?
All in all, selling your California enterprise can be a major logistics, legal, and financial headache.
With years of experience guiding countless entrepreneurs to successfully exit their companies by ensuring that everything is done right, Gallagher Krich, APC can navigate all the legal risks on your behalf to offer a stress-free way of selling your business.
Talk with our business attorneys today to plan the dissolving process and avoid any further liability after dissolution. Give us a call or contact us online here.





