If you are running a corporation and you no longer wish to be in business, the process of winding up your corporate affairs is much more complicated then simply closing your doors. There are specific steps that must be taken to comply with California state requirements as well as to comply with requirements on the federal level. A failure to take the right steps to end your corporation could result in creditors or others taking legal action against your business; additional tax costs; and other potential expenditures at the state or the federal level.
Because the process can be complicated, it is important to hire a lawyer for corporate dissolution questions. Your attorney can guide you through every step, from deciding whether to dissolve your corporation to completing all required paperwork and processes necessary to close the business down for good.
Why You Should Hire a Lawyer for Corporate Dissolution Questions
There are a variety of different steps that must be taken to officially end your operations as a California corporation. The necessary steps include filing any delinquent tax returns, as well as filing a current year tax return and noting that it will be the final one. Filing with the California Secretary of State is also required, and the forms you may need to complete include surrender, dissolution or cancellation forms depending upon what type of business you are operating. Creditors have to be notified, delinquent balances on debts paid, and assets remaining divided among the owners of the corporation.
At each of these steps, questions may arise regarding exactly what you need to do. For example, you may not be certain about exactly what tax forms need to be filed or about what forms need to be filed with the Secretary of State. You may not know exactly how to notify creditors or what you need to include in this notification for it to be valid. You may be uncertain about how to divide up the assets among owners, or about what each owner is entitled to receive as the company closes its doors. Even knowing what your obligations are regarding sending employee’s final paychecks can be a difficult challenge.
You should hire a lawyer for corporate dissolution questions so your attorney can advise you and make sure you do each of these different steps correctly. This will allow you to move forward as quickly and effectively as possible in getting your business affairs resolved and wound down. Your lawyer can not only answer your questions and make sure you complete the steps to dissolve the corporation, but can also provide you with strategic legal advice. For example, a company with delinquent taxes or that is going to face difficulty paying its income tax obligations for the current year could potentially negotiate a payment plan with the IRS.
When you hire a lawyer for corporate dissolution questions, you have a legal advocate looking out for your financial interests and protecting you from legal and financial problems as you close your company. Call the Sepahi Law Group, APC today to learn more about the different services your lawyer can provide to help you end your business and protect your future.