Business Dissolution Attorneys in San Jose, California
There are different hardships and circumstances that may force a business dissolution. Regardless of the reasons for dissolving a company, consider working with an experienced business dissolution attorney to help you navigate the process and protect your and the business’s interests and assets.
At The Heritage Law Group, our skilled business dissolution attorneys can assist you in closing your company’s doors. We understand the legal nuances and risks involved in dissolving a business. With an office in San Jose, California, we serve clients throughout Southern and Northern California. We also have an office in Houston, Texas, and provide legal counsel to individuals and businesses throughout Montgomery County and Fort Bend County in Texas.
Common Reasons for Dissolving a Business
Business owners and partners may decide to initiate the business dissolution process for a variety of reasons. Common reasons for dissolving a company include but are not limited to:
Low cash flow (money is not coming in to keep up with the bills)
Too much competition
Lawsuits and liability issues
Disagreement between partners
Death or retirement of a business owner or partner
Reasons why a business may close its doors vary from one dissolution to another. However, regardless of why you decide to dissolve your company, it is important to follow the proper steps when ending your business.
What Is the Business Dissolution Process?
The business dissolution process consists of a number of critical steps to limit your potential liability and mitigate the costs of closing your company. The steps involved in the dissolution process depend on whether you are dissolving a Limited Liability Company (LLC), corporation, partnership, or sole proprietorship. Generally, the process includes the following steps:
Review organizational documents. If your business has organizational documents, you will need to review them to learn what steps are required to dissolve your company. Organizational documents may include Articles of Incorporation, Articles of Organization, or other documents, depending on the business structure. For example, when dissolving an LLC, your operating agreement may require voting on dissolution before the company can be dissolved.
File appropriate notices of dissolution. The requirements and procedures for filing notices of dissolution vary from one state to another. That is why it is critical to contact an experienced attorney well-versed in local laws to ensure that you file appropriate notices when closing your business. Contact The Heritage Law Group to speak with our business dissolution attorney in San Jose, California, and discuss the procedural requirements in your case.
Wind up business operations. Winding up is one of the most complicated parts of the business dissolution process. Winding up business operations involves taking inventory of business assets, paying employees, notifying creditors, paying off debts, discharging liability, closing the operations of the business, and distributing remaining assets to owners or stakeholders.
Notify tax and license authorities. The next step is to notify tax agencies of the dissolution to obtain tax clearance. You also need to terminate any licenses and permits held in your business’s name. Without notifying tax and license authorities, your business may not be completely dissolved. Contact a skilled business dissolution attorney to help you with this step.
Close business bank accounts and cancel out-of-state registrations. Finally, you can proceed to close your business bank accounts and cancel out-of-state registrations if your company is registered to do business in other states. If you do not cancel your registrations in other states, you may be liable for business taxes and annual fees in those states.
A knowledgeable business attorney will guide you through the process to protect your personal and professional interests and ensure that your company is legally dissolved.
Business Dissolution Attorneys Serving
San Jose, California
If you face the end of your business, work with a knowledgeable attorney. At The Heritage Law Group, our business dissolution attorneys in San Jose, California, understand what is at stake when you need to dissolve your business. We have the knowledge and resources to address your concerns and help you each step of the way. Contact our office today to discuss business dissolution in your specific case.