Rancho Cucamonga Business Dissolution Lawyer
Lawyers Protecting Your Rights in Civil Litigation
No matter the corporate structure or nature of your business - from partnerships to corporations, to limited liability companies - the dissolution of a business is a sensitive and very important matter. There is great potential for a continuation of liability if such legal efforts are not handled properly and with care.
An experienced Rancho Cucamonga civil litigation attorney from Chung & Ignacio, LLP stands prepared to guide you successfully through the dissolution of your business. We aim to resolve any and all outstanding financial or legal issues.
Schedule your complimentary review. Call us today at (909) 726-7112
What Causes the Dissolution of a Business?
Each dissolution case is unique and there can be a wide variety of reasons behind the ending of an enterprise. In best case scenarios, the decision to dissolve was wholly amicable and voluntary.
In more difficult situations, there may be other imminent contributors such as:
- External pressures
- Partnership disputes
- Control issues
- Other matters beyond your control
How to Handle a Business Dissolution
It is never an easy to end something, especially something as important and time-consuming as a business. Businesses require a lot of care, investment, and work. Individuals spend a significant amount of their time and lives building a business and making it run.
Whether it is because of unprofitability, internal dispute, or a government ordained dissolution, there may come a time for a business to close. However, the process of actually ending a business can be quite complicated.
Vote to Close Business
In companies that have more than one owner, the partners must come to a decision to end their business. Your organizational documents should list the technicalities of how many votes are needed in order to dissolve the business. In some cases, majority rules, while in other cases a two-third vote can suffice. You can also look up your state’s business statutes if the number is not specifically noted. Remember to record any decision in writing, whether through the minutes of a meeting or through written consent.
If you are the sole proprietor of a company, you do not need to worry about this step.
Alert the Government Offices
If you filed paperwork with the state when starting your business, you will need to file paperwork for a dissolution with the state as well. An example of this would be if you and your partner filed a “statement of authority” with the Secretary of State, you will have to file a “certificate of dissolution” when you end your enterprise. Filing dissolution paperwork can also help alert creditors and such of your decision.
Cancel Permits and Licenses
When you decide to end a business, it is imperative that you cancel any permit or license you may hold with the state or county. You can contact the agency or office who issued you the license or permit in the first place. It is important you do this so that others cannot use your license or permit for their own gain. If they did, you would be held responsible for what’s done under your name.
Let Your Creditors, Employees, and Customers Know of Your Decision
Much like letting the state and government know, it is important to notify your creditors, employees, customers, and anyone else who is a part of the business. This can include suppliers, service providers, banks, property owners, and lenders. This can help protect you from future debt or misunderstandings.
Settling Taxes and Debts
The most important step to take when dealing with taxes is to settle employment-related taxes. If you have employees, make sure you make your final payroll tax deposits. The federal and state employment tax authorities also need to be alerted of the decision to dissolve your business. You should make sure all the proper income and sales taxes are also filed. Finally, it is important to settle any business debts owed to different parties.
How Our Attorneys Can Help
No matter the emotional or financial pressures that have mounted during the time leading up to a business dissolution's necessity, you still have the right and ability to control at least some of the aspects of your company. When disputes and matters of contest arise as part of this process, our firm can offer skillful mediation and aggressive business litigation efforts.
We can not only protect your best interests against liabilities and other claims in civil litigation, but we can pursue such claims against third parties as well. Regardless of the relative simplicity or complexity of your business dissolution, our attorneys can be of assistance.
For exemplary legal counsel in complicated business matters, contact a Rancho Cucamonga business dissolution attorney today.