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Closing a business can be difficult. Let us protect your interests. Herrig & Vogt, LLP is a team of Roseville business attorneys who share decades of collective experience in Commercial Law, and we have an exhaustive understanding of the California statutes that apply to business dissolution and related matters. The process of winding up a corporation can be enormously complex, and even minor mistakes can cause it to drag on or even expose you to liability in the future.
Months or years after you thought you had completed the dissolution of your business, you could find yourself being sued for old debts or being hit with a large tax bill. If you want to take precautions to ensure that you are protected against such events, we can help you understand your options. Let our experienced and dedicated business lawyers guide you through the process of corporate dissolution and work to safeguard your personal interests.
Incorporation is a legal action that is completed only with the approval of the state. In the same way that a married couple cannot divorce without bringing the matter before a judge to issue a decree, the parties to a corporation cannot simply disband and go their separate ways without doing anything further on the matter.
Before you can legally dissolve your business, you must file the necessary paperwork with the California Secretary of State. Additionally, you must fulfill any outstanding obligations in order to finally end the corporation. Once all of these steps have been taken, you can then close this chapter and move on to your next endeavor without any concern about being liable for debts and other affairs of the corporation.
The approach to dissolving business will differ according to the form of business entity under which you have been incorporated. Under state law, domestic corporations dissolve, whereas limited liability companies and partnerships cancel, and foreign corporations - any corporation that was formed outside of California - surrender.
It is also necessary to file any delinquent tax returns and the final tax return, as well as paying any outstanding tax balances. You will also have to pay any debts that are owed by the corporation, in addition to completing or otherwise winding up any unfulfilled contracts. In the event that you will not be able to fulfill your contractual obligations, we can seek to negotiate a resolution that will help you avoid allegations of breach of contract.
Only after you have fulfilled the corporation's obligations may you and your partners take distributions from the corporation; otherwise, creditors and the government may pursue you for personal payment of the amounts that are still owed. All of these steps must be assiduously documented to be used as records in the event of a legal challenge in the future.
A Roseville business lawyer from our team can assist you with every aspect of the process, working to help you navigate the complexities and ensuring that all of your bases are covered. We serve clients throughout Placer County, Sacramento County and El Dorado County, and we are ready to put our skill and experience to work for you.
Do not hesitate to contact us now at (888) 901-8229 or online for a free case evaluation.
At our law firm, our legal team brings more than 100 years of combined experience to every case. Several of us our top-rated by peers for exceptional ethics and legal ability, known for delivering client-centered counsel for any legal issue. Discover how we can be of service in a no cost, no obligation case review.