There are various reasons why a business may come to an end. Regardless of why someone decides to dissolve their business, every company must follow specific state procedure for dissolution when they wish to cease doing business.
Whether a business is a corporation, partnership, sole proprietorship, or any of the myriad of variants, proper business dissolution is a multi-step process. If a company owes money in the form of taxes or contractual obligations, it must complete these payments before the company can apply for a formal dissolution.
A Denver business dissolution lawyer could help professionals take the necessary steps to properly dissolve their company. This includes forming a dissolution plan, gathering the necessary documentation, making payment plans, and filing paperwork with the State. The attorneys at our firm are dedicated to making this process go as smoothly as possible.
The Secretary of State has the jurisdiction to control the creation and dissolution of business entities. The legal dissolution process begins with the completion and filing of dissolution paperwork with the Secretary of State. It is important to note that business owners must fill out the proper documentation that applies to their specific type of business structure. Therefore, someone may need to fill out one form to dissolve a corporation and another for a partnership.
In addition to these forms, the company will need to submit evidence of its own dissolution. This may be articles of dissolution from shareholders or proof of an agreement between partners to cease doing business. A Denver attorney could explain the legal requirements for business dissolution and draft the relevant documents.
Submitting formal articles of dissolution is only one step in going out of business. Prior to this, a company must ensure to close their accounts and settle any outstanding debts. A company may carry debts in the form of real estate lease payments, money owed to employees, outstanding vendor contracts, or insurance premiums. Proper settlement of debt helps the owners of the company to avoid any future legal trouble.
It is only after a company pays outstanding debts and obligations that shareholders or partners can distribute profits. These profits are commonly the product of a liquidation of a company. The sale of assets such as real estate, intellectual property, or manufacturing equipment is commonly a part of the dissolution process. In fact, this liquidation is often necessary to obtain cash to pay creditors. The articles of incorporation or other business formation contracts should speak to the proper distribution of these profits. A lawyer in Denver could help with the process of outstanding debt payment and ensure adherence to the profit plan during a business dissolution.
Ending a business can be a difficult task. Fortunately, a Denver business dissolution lawyer could guide you through this complex process. They could work to ensure compliance with state laws and create road maps to provide proper payments to avoid future legal burdens. Contact our office today to speak with one of our knowledgeable legal professionals.
Reynolds Gillette LLC