Are you considering closing a company in San Diego due to COVID-19? What happens when a San Diego company, LLC, or corporation closes its business?
There are several reasons why it may be necessary to dissolve a company. The most common reason in recent months is the tremendous impact of COVID-19 on San Diego businesses. Perhaps the LLC or corporation was established for a specific project or purpose, and that goal has been achieved. Perhaps its time for retirement or another opportunity has arisen and you don’t wish to sell your business, just bring it to a close.
The primary reason for corporate dissolution when closing a company in San Diego due to COVID-19 is to close the door on liability to taxes, creditors and government fees. Corporate dissolution officially notifies the State of California (or any other state) that you are no longer responsible for filing reports, paying fees or taxes. It ensures that the business cannot incur any future debts and it closes the window on the time frame for creditors to file any actions or lawsuits. The process of corporate dissolution is legally complex, and you do not wish to do this without the counsel and help of experienced corporate dissolution attorneys.
The Watkins Firm will guide you through every step along the way including the creation, passage and documentation of the corporate vote required for closing a company in San Diego due to COVID-19. There are tax returns and forms that must be filed with the IRS, as well as California state tax agencies and the Secretary of State. This includes any letters of “clearance” from States or tax agencies. There are notifications which must be sent to all creditors, and documentation for all members of an LLC or shareholders in a corporation.
Corporate dissolution is an end, but it is often also a beginning. Closing a company in San Diego due to COVID-19 requires properly attending to the details of corporate dissolution to cut off any potential additional liabilities. Closing your business in this manner opens the future so that you can move forward to your next venture. If you are considering a corporate dissolution or are prepared to begin we invite you to contact the Watkins Firm or call today for a complimentary consultation at 858-535-1511.
