Businesses can only be dissolved by the state and its authorities as said businesses are usually formed under these institutions. A business is dissolved by the government for a number of reasons, one of which is financial problems. Other reasons like change in the type of service offered, or retirement in the case of LLC’s can also be viable in the dissolution of a business. Businesses do not just dissolved without the notice of the state, and as such due process should be followed when carrying out a voluntary termination process.
Businesses can only be dissolved by filing a request, as was done during the formation of the businesses. A business cannot be dissolved properly until it is issued a certificate of dissolution by the proper authorities. This means that details like fees, taxes, reports, profit, and fines are still viable until the proper certification is issued.
There are steps and procedures that need to be followed before filing for dissolution. Details like finances need to be taken care of by an accountant. Some of these details are:
Getting in touch with the IRS by filing federal tax returns, depositing federal taxes, making sure that a detailed reports on the profits and losses that have been incurred for the year is issued to the IRS and detailing your partners and shareholders shares to the IRS.
Making sure that things are properly taken care of on the employees end; making sure tax information from the W-2’s issued to the employees are filed, paying off all outstanding salaries to sub-contractors and permanent staff, filing the final employment tax form, filing the final employment tax form, preparing and reporting an up to date version from the issued 1990’s form, ensuring that the employees benefits and pension are properly documented and filing final allocation tips return.
Putting things in order on the state level by filing a state tax return for the period with which your business is to be dissolved. Other details like paying final state tax, documenting and submitting employment tax form, sales tax return and final employment tax return should also be completed.