Sometimes, for many reasons, a business owner will need to shut down their operations. If you find yourself in a situation needing to dissolve your business, you should hire an attorney to help walk you through the process to make sure you don’t miss anything important. Here are just a few essential things that must be done when dissolving your business:
1. Corporation or LLC
- If your business is a Corporation or an LLC, all members must grant approval. It is recommended that this approval be documented.
2. Articles of Dissolution
- Paperwork needs to be filed in the state where your business was incorporated. If your business is in other states, then you must file paperwork there as well. The process for filing your Articles of Dissolution varies state to state. All taxes must be taken care of and paid for before you file for this.
3. Federal, State, and Local Taxes
- Dissolving a business must be run by the IRS as well as state and local taxing agencies. If you have employees, you will still have to report payroll. This is where consulting your accountant will be very critical.
4. Distribution of Assets
- Whatever assets that are left should be distributed based on company ownership. These distributions need to be reported to the IRS. This is something else that will likely require the assistance of an accountant.
There is much more that goes into the dissolution of a business. If you are at a point where you feel that you need to dissolve your business, contact us and we’ll make sure that it is a smooth process.