Corporate Dissolution – Articles of Dissolution

There could be many reasons you may wish to close your company.  Some can be extremely positive; for example, you may have made enough money and are now ready to retire, or you want to try your hand at a new venture; some reasons can be extremely stressful, such as declining revenues due to competitive pressures or, even worse, disagreements amongst the owners.

Whatever the reason, it is vital, not to mention required by law, that you formally dissolve your corporation. Failure to take the right steps in this process can lead to unanticipated liabilities and problems further down the road.  While the process to close a corporation is done by filing a Certificate of Dissolution (Form DISS STK) or Short Form Certificate of Dissolution (Form DISF STK), (these are sometimes referred to as ‘articles of dissolution‘) there is much to be taken into account to do this right.

There are many aspects and responsibilities associated with the process of owning a corporation in California; these include paying the necessary filing fees, keeping good corporate records, and updating your company information with the Secretary of State as well as the Franchise Tax Board.  If you are shutting down a corporation or LLC in California, one of the most important things you must do as an owner is to dissolve your company properly.

There are specific code sections for California that define the process.  However, it should not be underestimated that corporation dissolution is can be significantly more complex than the incorporation process.

This is primarily the reason that a corporate attorney in the State of California strongly recommends that business owners and or corporate officers make use of professional legal and tax counsel when dissolving a company.  By engaging with experienced corporate lawyers you are much more likely to ensure that your intentions are met and that the requirements of the law are fully satisfied.  This will also help to protect the shareholders, officers, and directors after and during the business dissolution.

Don’t let your hard-earned dollars walk out on you!

If you are shutting down your business you must also dissolve your corporation with the state.  Otherwise, you could get stuck paying taxes and fees you do not want or need.  Attempting to consolidate the necessary paperwork and fees on your own could result in the rejection of your filings and prolong the corporate dissolution process.

There are different kinds of corporate dissolution and specific conditions that must apply to enable these to be used.  These rules can also vary by state; learn more about the different kinds of corporate dissolution in California.

A lengthy business dissolution can end up costing you a lot more money than if you had hired a professional to get it all right the first time. Closing down a business is a stressful experience in itself.  Do not add to the general anxiety by leaving the important paperwork in the hands of anyone but an expert.

Within our Corporate Records Program, we a have quick and efficient process than enables us to draw up the necessary ‘articles of dissolution’ which are comprised of a Certificate of Dissolution (Form DISS STK) and Certificate of Election to Wind Up and Dissolve (Form DSF STK) and file them with the appropriate offices punctually.  This ensures that you don’t waste any time or money wrapping up the final legal papers for your business.

Make the corporate dissolution process easier on yourself by taking advantage of our Incorporation Attorneys Corporate Records Program.