Are you wondering about the process for dissolving an LLC or Corporation in San Diego or throughout California? The costs of doing business, including minimum wage and onerous bureaucracy imposed on our small businesses and employers has made it much more challenging to justify staying in business. Competition is fierce and the business climate is constantly changing and evolving.
There are many reasons for deciding to bring business operations to a close. 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 or shareholders about profit distribution or direction of the company, or there may be theft or inappropriate commingling of assets by one of the owners.
You simply can’t close your doors and say “we’re out of business.” Dissolving an LLC or corporation in California must be done legally and properly or you will face substantial liability down the road. There is a plan when dissolving your small business, and a thorough step-by-step process. The Watkins Firm has over 40+ years of experience serving the business, science and tech, real estate and medical / healthcare communities here in San Diego and across California
Our experienced business attorneys at the Watkins Firm can help you to develop and implement the process to make sure you are free of all obligations associated with the closing of your company.
Basically, you need to bring the day-to-day operations of the company to an end, and marshal 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 or shareholders per the corporate documents and/or operating agreement.
Are you considering dissolving an LLC or Corporation in San Diego or anywhere in California? We invite you to review our podcast Episode 19 – Your Business Attorney is a Valuable Partner, as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
