Are you considering closing a company in San Diego or anywhere in California?  What is corporate dissolution and what needs to happen when a California company, LLC, or corporation closes its business?

There are several reasons why it may be necessary to dissolve a company.  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. Corporate dissolution is the process to legally end a business entity and its operations in the State of California.

The primary reason for corporate dissolution when closing a company in California 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 or anywhere in California.  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.

Pro-Tip: “Nobody fights in a business situation unless there’s money to be made or lost. And if you have an agreement that identifies what everybody’s rights and obligations are ahead of time, then you won’t have a fight because everybody will know – it’s spelled out in the corporate documents. But if the corporate documents are boilerplate, or haven’t been updated in several years then you’re going on people’s understanding. And when money is involved, potential liability is involved, emotions are involved, the process is going to need an experienced, proven Watkins Firm business attorney. 

In a corporate dissolution, your goal is to resolve any outstanding matters and follow a specific process to close the door and prevent any future issue, liability or lawsuit from being able to come knock on your door.  We’ve helped many clients to move through the closure of a company.  Often, it’s the first step to move on to their next investment or adventure.”

Corporate dissolution is an end, but it is often also a beginning.  Closing a company in San Diego or anywhere in California 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 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.