What are the 3 things to keep in mind when dissolving your San Diego business or entity? If the time comes to close your business for any reason, there are many things that should be completed to properly dissolve the company. We’ve outlined a few of the most significant ones here.
Properly file dissolution documents.
Depending on your type of business, there are forms that must be submitted to the government of your company’s dissolution. If you fail to do this, you may become liable for additional taxes and filings. Keep in mind that a sole proprietorship may not have to file papers in certain states, however, you should consult the experienced San Diego business attorneys at the Watkins Firm to be sure.
Part of dissolving your San Diego business will be canceling any applicable licenses or permits that your business has pursued, but will no longer be needing. In addition, you should be sure to cancel your business name registration with your local government.
Abide by employment and labor laws
The Worker Adjustment and Retraining Notification Act was created to protect employees and their families by establishing certain standards for companies to follow when dissolving. The U.S. Department of Labor Employment and Training Administration specifies who is subject to WARN standards:
In general, employers are covered by WARN if they have 100 or more employees, not counting employees who have worked less than 6 months in the last 12 months and not counting employees who work an average of less than 20 hours a week. Private, for-profit employers and private, nonprofit employers are covered, as are public and quasi-public entities which operate in a commercial context and are separately organized from the regular government. Regular Federal, State, and local government entities which provide public services are not covered.
In some states, even companies with less than 100 employees may also be subjected to WARN standards, so check with your local government or an attorney to find out.
Finalize your financials.
Of the 3 things to keep in mind when dissolving your San Diego business or entity this one is pretty easy to wrap your head around, but often gets overlooked. Pay all taxes, settle all debts, complete payroll, and don’t forget to close all business accounts (credit cards, bank accounts, etc). Failing to do so can create unnecessary headaches down the road.
Keep in mind that each state may vary on certain steps for dissolving your San Diego business or entity. It is important that you are aware of and follow these steps properly to avoid negative impact to you and/or other owners or shareholders. Our Watkins Firm attorneys can assist you through this process and protect you from legal entanglements that may result from missed steps or mishandled processes. If you are exploring the options of dissolving your business, let the Watkins Firm team advise you during the dissolution to keep it as smooth and simple as possible. We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
