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Steps to Dissolving Your Business

Dissolving a company involves a few critical steps. Incofile streamlines this process for you, transforming what could be an overwhelming task into a straightforward, hassle-free experience.

1

Convene a Meeting with the Board of Directors Ensure the minutes of the meeting record a resolution to dissolve, passed by the requisite majority as specified in your incorporation documents. For entities with shareholders, obtain a written consent signed by all owners. Single-member LLCs may bypass this step.

2

Submit the Articles of Dissolution Your business should be registered under an Assumed Name or use your formal corporate name for this process.

3

Inform the IRS Consider any necessary permits related to your business operations, such as home-based business permits or specific business activity licenses. The Small Business Development Center (SBDC) is a valuable resource for understanding local regulations. Additionally, closing all business-related credit lines and accounts is advisable. Informing creditors of your company's dissolution can potentially mitigate outstanding debts. Also, ensure any fictitious business names registered in other states are cancelled.

Navigating the Dissolution of an LLC

There are numerous reasons why a corporation or LLC might be dissolved, including a strategic decision due to lack of success, embarking on new ventures, or a collective decision by shareholders to liquidate assets. Completing the dissolution process ceases ongoing tax obligations and other statutory filings associated with maintaining an active business registration with the secretary of state. The emotional weight of dissolving a business you've passionately built can be significant. Incofile is here to alleviate that burden by managing the dissolution paperwork on your behalf.

Procedure for Closing Your LLC or Corporation

The life of a company starts with its Articles of Incorporation, and logically, it concludes with the filing of Articles of Dissolution. Without this crucial step, business owners remain accountable for taxes and other legal obligations. Fortunately, the process of closing a company boils down to handling the necessary paperwork.

To effectively dissolve an LLC or corporation that's ceased operations, Articles of Dissolution must be submitted to the state of incorporation. Failure to file these documents for an inactive company can lead to ongoing liabilities, such as fees or taxes.

Dissolving a business is fundamentally about submitting the Articles of Dissolution to the secretary of state, but unresolved legal or financial issues can complicate the dissolution if the business is not in compliance with state regulations.

We Manage the Paperwork, Saving You Time

Prerequisites for Filing Articles of Dissolution:

The entity must be in good standing with its state of incorporation, not behind on franchise taxes, or overdue on annual report filings. If the entity is not in good standing, reinstatement might be necessary before proceeding with dissolution.

Dissolution


FAQs on Dissolution Filing

A: These documents officially terminate a company's incorporation status, outlining the procedures for asset distribution or sale, shareholder compensation, and management's division of responsibilities.

A: Filing costs vary by state, with Incofile's service fee for filing being $149. For specific state fees, proceed to the order section and select your state and entity type

A: Outstanding taxes or unfiled annual reports can block the dissolution process. The entity must resolve these issues and return to good standing before dissolution can be filed.

A: Processing times depend on the state's administrative agency and vary across states.

A:Once filed, the state agency provides a copy of the dissolution documents, which Incofile then forwards to you.

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Business Formation

Start an LLC, S Corp, C Corp, or nonprofit here.

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Dissolution

Used to formally terminate the existence of an entity.

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Dissolution

Used to formally terminate the existence of an entity.

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Description of the card content.

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DBA

File if your company requires an assumed business or fictitious name.

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Foreign Qualification

Filed when you need to expand your entity to new states.

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Virtual Address

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