If you are planning to close the doors of your company you need to understand the legal process for dissolving your business in San Diego and the steps required to conclude your LLC or corporation. Closing the doors to any LLC, partnership or corporate entity requires a substantial number of steps here in California. The failure to effectively manage the closing of a business exposes ownership to substantial legal and financial risk down the road.
What are the Basic Steps for Dissolving Your Business in San Diego
Once the decision to close the company has been reached there will be several steps for dissolving your business in San Diego to work through. These include:
- Bringing transactions to a conclusion and collecting outstanding invoices
- Ceasing operations and making final payments to employees
- Resolving or eliminating outstanding litigation or contingent liabilities (when possible)
- Liquidate the assets of the company
- Pay all taxes owed by the company
- Retire all debts and obligations associated with your business
- File final tax returns and reports to state and federal agencies
- Distribute any remaining profits or capital to members or shareholders
Complications and Disputes are Unfortunately Quite Common in a Business Dissolution
This process can be fraught with complications, and it is not unusual for internal disputes to arise while dissolving a business in San Diego. Minority interests are concerned about access to the books, and all payments made to creditors, taxing authorities and the firm’s employees. Have the assets of the business been properly sold, or have the principal owners attempted to conduct “sweetheart deals” that deprive the company of needed capital? What is to become of intellectual property, trademarks, branding and electronic property of the company such as the website and all associated internet properties?
What messaging will be used to communicate with employees, suppliers, creditors, customers and other ownership interests? The best way to avoid additional business disputes with members or shareholder disputes as well as employee-related challenges is to be as transparent as possible, and to provide open access to all information along the way. Many companies decide to hire the proven efficient and effective business attorneys at the Watkins Firm to independently manage the process.
The attorneys at the Watkins Firm can protect your interests and provide sound counsel when dissolving a business in San Diego while helping to prevent unnecessary disputes. 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.
