Full Video Transcript
Are you thinking about dissolving your business in these tough economic times? There might be some important legal considerations that come into play. For example, the owners of the business must formally approve the decision to dissolve the company, particularly if there are shareholders or partners in the business, and must file the approval in the company records. Also, formalized business entities, like corporations and LLCs, need to file an official statement of dissolution with the Secretary of State where the business was formed. The finances of the businesses will also need to be wound up - including notifying creditors of the intended dissolution, selling off assets, repaying debts, and tying up any other loose ends. In some cases, the owners may be held personally liable for certain remaining debts. Finally, the business needs to obtain its final tax clearance from the state and federal authorities.
While these steps are pretty standard, every business is different, and there may be special procedures required in certain cases. For more information on dissolving your business contact an attorney in your area today.