Dissolution
Regrettably, not all businesses succeed to the level their owners originally intend and many must cease operations. Dissolution is the termination of a company’s legal existence. Dissolution may be caused in many ways, including failure to file annual reports, failure to pay certain taxes, bankruptcy, or voluntary dissolution of the business by its owners.
If your company is ceasing operations or is no longer in business, BizFilings can directly assist with filing the articles of dissolution with the state of formation, or if applicable the state(s) of foreign qualification, to terminate the existence of a corporation, limited liability company (LLC) or nonprofit corporation.
There are a number of other steps involved in the dissolution of a business, which are outlined in our article entitled “Dissolving Your Business".
Pricing
The BizFilings fee for a dissolution is $139 + state fees.
Frequently Asked Questions
Q. What is a dissolution?
A. A Dissolution is the termination of a the legal existence of a company.
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Q. What are some of the reasons why a business might dissolve?
A. Voluntary dissolution of a business might occur for a variety of reasons with the most common being management deadlock or unprofitability. A company’s state of formation can enact involuntary Dissolution on a company if that company has failed to file annual reports with the state, pay annual fees and/or taxes, or is encountering bankruptcy.
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Q. Is the dissolution process different for a limited liability company (LLC) than for a corporation?
A. The existence of LLCs is less stable than that of corporations in the sense that an outside occurrence, such as a death of an owner, can end the company’s existence (depending on the operating agreement). Otherwise, the dissolution process is the same for both entities.
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Q. What steps should I take when dissolving my business in order to minimize any risk to my personal assets?
A. There are several steps involved in properly dissolving a business. Please refer to our article “Dissolving Your Business” for additional information on this topic.
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