What is a Business Dissolution?
The dissolution of a business is the process by which a company is legally dissolved. This means its property and assets are sold, its debts paid to the extent of assets available and any remaining cash is distributed to the company’s shareholders, members or partners. Although that sounds simple, the process is important and can be complex depending on the circumstance.
Among the federal requirements for business dissolution are the final corporate tax return and the final employment tax returns including deposits of any monies owed. Reports that need to be filed include information about proper disposal of business property, any like-kind exchanges of property and information about changing the form of the business, if that is the case. Additionally there are the state and local requirements.
We can assist you with the dissolution of legal partnerships, corporations and LLCs. Businesses dissolve for various reason, including but not limited to, retirement, business succession, career change, mergers and acquisitions, loss of capital or financial backing, misconduct, partner and shareholder agreement to disband, and more.
We will help you asses your options so that you can make your decisions with minimal financial and emotional effects. The best way to prepare for business dissolution is to have a comprehensive exit strategy in place before the dissolution or break-up.
As your attorneys in the business dissolution process we will assist you with:
- Division of assets and liabilities
- Distribution of shares
- Tax implications
- Notifying creditors and settling creditor claims
- Mergers and acquisitions
- Litigate contested business dissolution
- Establish and execute exit strategy plans
- Review of partnership agreements, operating agreements, shareholder agreements and other corporate documents
- Conduct a thorough business evaluation