You need an experienced and proven legal partner for corporate dissolution in San Diego or closing a California business. This is going to be a complex process. When is it time to implement a corporate dissolution for a C-Corporation, S-Corporation or the closing of an LLC?
Key Takeaways About Corporate Dissolution in San Diego – Closing a California Business
- Corporate dissolution in San Diego or closing a California business requires an experienced and proven legal partner.
- The primary benefit of corporate dissolution is the elimination of contingent liabilities associated with the company in the future.
- Corporate dissolution in California requires several comprehensive and complex legal, financial, and tax-related steps. You will need an experienced business attorney to guide you through the process so that you can move forward confidently toward your next project or goal.
Why Does a Business or Corporation Need to Be Dissolved?
A company or corporation is usually dissolved when ordered to do so by a court or when the owners or principle shareholders determine the entity is no longer viable and needs to be concluded.
Corporate dissolution immediately eliminates several expenses including the cost of creating reports for the California Secretary of State and paying associated fees as well as the annual $800 franchise tax. Corporate dissolution ensures the final filing of state and federal tax returns and saves the costs of these filings in the future as well.
Watkins Firm attorneys have helped to dissolve hundreds of businesses over our 40+ years of experience serving the business, science and tech, real estate and medical / healthcare communities here in San Diego and across California. If you are considering closing your San Diego or California company or business through corporate dissolution we can help. If your business has been suspended or is not in good standing with the state we will help to “revive” the company so that it may ultimately be dissolved. This includes filing of appropriate paperwork and the payment of any fees which are in arrears.
The primary benefit of corporate dissolution is the closing of contingent liabilities. There are several steps in the process including but not limited to:
- Completing all existing business, contracts and corporate obligations
- Resolution of outstanding disputes, litigation or contingent liabilities involving the business
- Prepare and submit final federal and state tax returns
- Liquidate all assets
- Retire all debts and taxes owed
- Settle owner capital accounts
- Obtain a California FTB “Clearance Certificate” (or other state forms establishing the completion of all corporate obligations and liabilities)
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.”
If you would like more information about closing your San Diego business through corporate dissolution 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.
Meet Daniel Watkins:
Daniel W. Watkins is a true people person who sincerely listens. He cares deeply about what others are going through. Dan enjoys digging into the facts and finding creative solutions to problems. He contributes his insights candidly and constructively.
Dan’s interest in people make him deeply invested in every relationship and his exuberant personality makes him a true litigator. Dan fights for his clients with a fierce and calculated commitment.
Dan has practiced in the areas of business, medical practices and healthcare business, high tech/science, real estate and employment defense law since 1987. He is a trusted litigation strategist and true trial attorney with over 50 jury and bench trials to his credit. Dan has successfully represented both large companies and individuals and achieved substantial victories in well-publicized trials throughout California and the U.S.
He is experienced in business and corporate formation and administration, as well as all forms of alternative dispute resolution, including binding arbitration and mediation.
THE ROAD TO BECOMING A BUSINESS LAWYER AND LITIGATOR
Dan has almost 40 years of experience working with, for and against some of the largest insurance companies in the country. He has successfully tried and litigated cases in the areas of Healthcare Compliance, Commercial Litigation, Unfair Business Practices, Fraud, Breach of Contract, Battery, Premises Liability, Product Defect, Medical Malpractice, Discrimination, Sexual Harassment, Construction Defect, as well as Unfair Competition, Defamation, and Trade Secrets.
In December 2003, Dan commenced litigation against Health South Surgery Centers-West, Inc and its’ subsidiaries, exposing the company’s extensive mismanagement and misconduct of its’ surgery centers. Dan has also been asked by some of California’s largest municipalities and corporations to conduct legally required investigations into matters involving alleged employment discrimination and harassment.
