Times are tough and many businesses out there are struggling to survive. Many unfortunately are going out of business simply because there isn't enough customers to keep their business going. In this case, if you're running a corporation or a LLC, it is important that you file for a dissolution with the state. A dissolution, is the opposite of forming your corporation by submitting articles of incorporation or oganization. Articles of dissolution must be submitted to the state to terminate the existence of your business.
With the filing of the Articles of Dissolution, fees may be involved to submit these forms to the state. Failure to submit these forms to the state may result in you paying fees for having a company that is still active. In most state, failure to pay these fees may result in an automatic dissolution with the state. In California, failure to submit the articles of dissolution, may require you to pay the minimum franchise tax of $800. Therefore it is important that you file these documents.
Once business gets better, most states may reactivate dissolved companies however you will most likely need to refile articles of incorporation to reinstate the company. One thing to note about this is that some states require a corporate name to be dissolved for a certain period of time, usually a year to five years for the same name to be used again. So you may need to change the name of the corporation if this happens.
We can help you with your dissolution filing. Please contact us today.