What is required for LLC dissolution in California in order to close the business?  What steps are involved in the dissolution of an LLC and why is it important to have the assistance of an experienced business attorney?

The legal process for closing the doors of a corporation or an LLC in California is known as a “dissolution.”  If the owner or owners of an LLC do not take the necessary steps to properly close their company, they remain exposed to liabilities, taxes, penalties and accumulating interest.

In some cases the LLC has achieved the goals for which it was established, and you simply need to conclude the affairs of the company and close the books.  In other situations, unexpected developments or changing business factors have lead the owner or members of an LLC to reach a difficult decision: “It’s time to close our doors.”  An LLC dissolution in California can be quite emotional for the parties involved, and this often leads to volatility and member disputes.

The experienced San Diego business attorneys at the Watkins Firm have served the San Diego and California business community for more than 40 years.  We understand all of these perspectives, and work to provide sound counsel and an effective process to move you through to completion.  We work to quickly and efficiently resolve existing disputes and contingent liabilities.  The process involves identification of all assets and receivables, debts and liabilities and payroll obligations.  The State of California provides legal priority for payment of outstanding debts and a smooth process to notify appropriate state and local agencies.

We must work with our clients to ensure that proper tax filings are completed, and final paperwork submitted to all interested parties.  Finally, any remaining funds are distributed based upon the agreements established in the LLC operating agreement or corporate documents or subsequent settlement agreements.

Pro-Tip: “We’ve had clients for decades. And when our clients do well, our attorneys feel like they’re doing well outside of whether they’re getting paid a whole bunch of money or not or fees or anything. We have long term clients. And our attorneys really feel good when things turn out for them because a, on the litigation side, they go through stress and we go through stress. And when we resolve a dispute and our clients are happy, we’re happy. And we’re relieved transactions. Our clients have owned their company for years and years and years, and they want to sell it. They believe they have a good deal on the table and we want to do everything we can to make sure that goes smoothly. And our client gets all of their benefits of the bargain, everything they wanted. We want to do our best to make sure they get that. And if it happens and they’re happy, then we are proud. We’re very proud and we’re happy for them.

Sometimes it’s time to bring business to a close.  Business and market factors change. People retire. Investors want to move on to the next project.  There are many reasons for considering the dissolution of an LLC or corporation.  The primary factor here is to get it right.  Get the door closed on taxes, on contingent liabilities, on creditors, so you can move on to whatever is next for you.” – Dan Watkins, Founding Partner

If you are interested in learning more about the dissolution of an LLC in San Diego we invite you to review our podcast Episode 10 – The Importance of a Strong Corporate Attorney as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.