What Are The Key Steps In Business Dissolution?
Starting a business can be exciting, and ending one can be heartbreaking, especially if you have built it from scratch. The reasons for closing a business may vary. Some may do it because the business has run its course, while others may want to start a brand-new venture. Generally, small business owners close their business if it does not meet their expectations.
That being said, closing a business is not just putting a lock on the front door and putting an “out of business” sign. Following the state’s dissolution legislation is crucial to conducting a business’s dissolution legally. If you are considering closing your company or business but do not know where to start, click here to find the best attorneys in town.
Key steps in business dissolution
- Reach a formal agreement to close the business.
The dissolution beavercreek oh of a business requires the vote of all the shareholders. There will likely be a meeting with the board of directors where every shareholder will give out their vote. As is obvious, what the majority wants will prevail. If the majority does not approve the dissolution, the business will stand as it is and won’t be dissolved.
- Get expert advice.
Dissolving a business is a big step, whether it is a small or big organization. Before you take the big step, you want to make sure you make the right choice by consulting with an expert. For example, you may want to close the business because you believe it won’t help you make money anymore. But talking to an expert can change things.
Additionally, the dissolution process can be complicated. You do not want to go about this journey without expert help.
- File a Certificate of Dissolution with the state.
Once the shareholders have decided to close the business, you must do the necessary paperwork. File the paperwork in the state where the company was formed. If your company has done business in other states, you must also file paperwork in those states.
The process for paperwork varies from state to state. Talk to your attorney about the process in your state to avoid mistakes.
- File a final tax return.
You might be closing your business, but that does not relieve you from your tax duties. You will still need to file a final tax return. You should determine whether your company has any outstanding taxes to pay before deciding whether to dissolve it.