Dissolution – Bent Enterprise

The Procedure for Company Dissolution

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.

  • Hold a meeting with the board of directions proposing a motion with regards to the termination of the company. The board of directions should pass a vote, opposing or agreeing with the motion. This meeting should be recorded for future purposes. The motion should also be voted on by the top shareholders of the company. A start-upbusiness usually doesn’t have board of directors, so the members should be asked to sign for or against the motion.
  • All directors and major holders should be told of this meeting without being ambiguous, regardless of voting power.
  • The article of dissolution should be filed with the proper state authorities, while following the bylaws for dissolution in that state.
  • Financial accounts should be closed on approval from the state for dissolution, while the assets should be shared amongst the top people.
  • When the certificate of dissolution has been issued to the company, the business ceases to exist; without this certificate being filed by the proper state authorities, the business is still in existence and has not been dissolved. The date of dissolution of any company can only coincide with the period the certificate was issued, regardless of when the dissolution was filed by the company.
  • A proper certificate of dissolution carries the signature of the relevant state authority, with their names printed beside the signature.
  • Getting your certificate of dissolution by following the proper laws of the state would mean that you no longer have to pay taxes or fees which the business was mandated to pay prior to the dissolution procedure. Not filing for dissolution means you still have to pay annual report fees, as well as many others. Filing for dissolution also makes it possible for you to prevent penalties gotten from late annual reports. If you don’t file for dissolution, you could incur heavy consequences as well as a late filing fee.
  • A business owner has a responsibility to its employees and other parts of the business; without getting a certificate of dissolution, this responsibility does not budge. This could cause a huge problem when obligations expected of by the company’s owners are not fulfilled.

Our Services

Taking care of the meeting and voting stage is your job but we help in so many other ways:

  • Departments like labour or finance need to be notified about the dissolution, so consent can be granted after outstanding issues have been settled. We help with getting consent in the states that require this.
  • We ensure that we reach out to the IRS, closing your EIN account.
  • We ensure that your article of dissolution is properly filed and sent to the relevant state authorities.
  • If it is necessary, we will notify your registered agent.

We handle the legal aspects of the dissolution but we cannot take care of the financial areas. We always advice, that our clients hire professional accounts with regards to the handling of financial dealings.

Place Your Order

Our professional service makes sure that your dissolution procedure is as stress-free as possible. We take care of things like getting consent when necessary, and making sure all financial accounts are notified for closure.

To get started, fill out our order form

Don’t let questions hold you back; get in touch with our customer care representatives who are well versed in dissolution cases to give you an appropriate answer. They can be reached through the phone or on chat lines.