Dissolving a Business
Notify State and 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.
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 the interested parties about the dissolution.
- Inform the employees and start the mass layoff, if it is the case;
- Inform potential creditors of an impending closing;
- Inform lenders, insurers, suppliers, vendors, and service providers to terminate those contracts;
- Pay all the valid current debts and compensations to employees and creditors;
- Distribute the remaining business assets to the owners/shareholders, as stated in your organizational documents.
Terminate Business Licences or Permits and 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.
Talk with our business attorneys today to plan the dissolving process and avoid any further liability after dissolution. Give us a call!