Are you wondering about the process for dissolving a small business in San Diego?  It is impossible to overstate the impact of the COVID-19 pandemic on the communities of San Diego and Southern California.  Stay at home orders and business restrictions have made it difficult for many small business owners to continue with business operations.

There are many reasons for dissolving an LLC in San Diego, and in many cases it is simply the fact that market factors have changed and the business is no longer viable.  There may be disagreement among the members about profit distribution or direction of the company, or there may be theft or inappropriate commingling of assets by one of the partners.

You simply can’t close your doors and say “we’re out of business.”  Dissolving a small business in San Diego must be done legally and properly or you will face substantial liability down the road.  There is a plan when dissolving an LLC or small business in San Diego, and the experienced business attorneys at the Watkins Firm can help you to develop and implement the process to make sure you are free of obligations associated with LLC ownership.

Basically, you need to bring the day-to-day operations of the company to an end, and marshall all of the assets.  In most cases you would liquidate any remaining assets, sell associated real estate and use all proceeds to pay off the business’ creditors.  You must file all appropriate forms with the State government, as well as state and federal tax returns.  Any remaining proceeds would normally be distributed between the members per the corporate documents and/or operating agreement.

Are you considering dissolving a small business in San Diego?  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.