Dissolving a company means to officially and formally close the business. Assets and liabilities must be dealt with properly, in much the same way Lewis Moving Company an executor would settle all assets, debts and affairs when someone dies. The first step to dissolving your business is for the owners Define Dissolved Company board of directors, depending on whether the company is publicly or privately Dissolfed, to create a resolution to dissolve.

Once that's agreed to by all shareholders, your company must file articles of dissolution with the secretary of state's office. This must be done in the same state in which the business was incorporated. This provides official legal notice Dedine the business is closing. Depending on your state, this may require other forms. Any property that's owned by your corporation is liquidated, which means selling any assets that aren't used as collateral for loans.

Property which is used as security for loans must either go to the institution that loaned money against it, or be paid off by your company before being sold for cash. Whether you're able to liquidate all assets depends on whether your company is insolvent at the time of dissolution and the amount of cash on hand plus Define Dissolved Company assets. EDfine next step in dissolving Drfine business is to settle all outstanding liabilities. Liabilities are any obligations the business has incurred before closing and include goods and services that have been paid for but not delivered as well as any short- or long-term debts.

One critical obligation is filing the final federal and state payroll and corporate income tax forms. Once the liabilities have all been settled, any remaining cash value in the business is distributed to the individual Define Dissolved Company or shareholders.

Once your company has voted to dissolve, formally filed articles of dissolution with the incorporating state, liquidated its assets and settled its debts and other obligations, a final legal notice is sent out to any entity that may have an interest in the company.

This notice would include creditors, shareholders and owners, customers, employees and any other interested party.

Laws on what parties must be notified and how much notice is required vary by Davis Trust Company App, but one universal requirement is to notify the Internal Revenue Service that your business is closing and will no longer be filing tax returns. Elliott Taylor has been a writer and blogger since His articles have been published in the "Arbiter" and "Messenger Index" newspapers, as well as online venues.

Skip to main content. References 2 Diswolved. About the Author Elliott Taylor has been a writer and blogger since Taylor, Elliott. What Does Dissolving a Company Mean? Small Business - Chron. Note: Depending on which text editor you're pasting into, you might have to add the italics to the site name.

Dissolution (law) - Wikipedia

Dissolution is the last stage of liquidation, the process by which a company (or part of a company) is brought to an end, and the assets and property of the company redistributed. Dissolution of a partnership is the first of two stages in the termination of a partnership.…