What This Page Covers:
- Types of Dissolution: Depending on your business, you may file an administrative, voluntary, or judicial dissolution. Each type involves different legal requirements and protections, such as compliance with Secretary of State mandates or court-ordered closures due to internal conflicts.
- Legal Compliance: Ensuring adherence to federal and state laws is crucial during dissolution. This includes filing tax returns, notifying stakeholders, closing accounts, and canceling permits.
- Employment and Environmental Laws: Properly handling employee notifications, payments, and benefits is essential as well as properly disposing of any hazardous materials to comply with state and federal regulations.
- Legal Support: With extensive trial experience, deep insurance knowledge, and a proven track record, Callahan & Blaine provides comprehensive support for your business dissolution. Our experienced team ensures a successful outcome while protecting your interests.
- Contact us today at (714) 241-4444 or through our contact form to discuss your options.
Whether your Los Angeles business is in excessive debt, has low cash flow, or has suffered due to disputes and disagreements, you may decide to dissolve it. Business dissolution involves winding up the affairs of a company and ending its existence. This process can be complicated, as you must comply with federal and state law and take the proper steps to close your business legally. With a trusted LA business dissolution lawyer’s help, you can better understand the steps you must take based on your business structure.
At Callahan & Blaine, we have helped Los Angeles businesses legally dissolve for over 40 years, giving us the knowledge, skills, and resources to take on your case. Our robust team of 29 lawyers provides high-quality, personalized legal services, creating effective strategies based on your unique needs, goals, and business. We consider every detail to protect your best interest and wind your business up successfully.
3 Types of Business Dissolution
If your business is no longer profitable or you want to move on to another venture, you may dissolve your business. There are several ways to do this, depending on the type of business, state and federal laws, and other factors. Three common types of business dissolution Callahan & Blaine can help with include the following:
Administrative
If a corporation has failed to file its annual report 120 after its due date, pay Secretary of State (SOS)-imposed fees, or have a registered agent for 30 days, the SOS may dissolve the business administratively. While this may be the simplest solution to dissolve your business, it may leave you vulnerable to liability and does not provide the same benefits as other types of dissolution.
Voluntary
Unlike administrative dissolution, voluntary dissolution is a process in which the board of directors and shareholders decide to close a business instead of the SOS. Filing this type of dissolution is an intricate process with several requirements, including a Revenue Clearance Certificate from the Department of Revenue, filing the Articles of Dissolution with the SOS, publishing a public dissolution notice, winding up operations, and distributing remaining assets.
While an administrative dissolution may appear to be the more cost-effective way to dissolve a company, voluntary dissolution provides protection. It ensures that taxes, fees, and penalties do not continue to build up and that your company is not considered an illegitimate entity for liability reasons. Additionally, this form of dissolution protects board members and shareholders against personal liability and shortens the amount of time claims can be filed.
Judicial
A judicial dissolution is a legal process in which a business is forced to close. It is typically prompted when an interested party, such as a shareholder, officer, or director, petitions the court for dissolution, often due to internal discord or corporate fraud. This is the least common type of business dissolution, and once it is decided, the only business that may continue is winding up and liquidating assets.
Legal Considerations for Los Angeles Business Dissolutions
No matter which type of business dissolution you face, the process can be challenging, with several legal factors to consider. At Callahan & Blaine, we leave no stone unturned, helping you understand the following aspects of dissolving a business:
Federal and State Law Compliance
We understand state and federal laws surrounding business dissolution can be confusing, so we clearly explain the requirements for this process, including the following:
- Filing a tax return
- Filing appropriate forms with the SOS based on your business type and whether or not the vote to dissolve was unanimous
- Paying outside debts, including fees owed to the California Franchise Tax Board
- Notifying creditors, vendors, employees, clients, and suppliers
- Closing business bank accounts and credit cards
- Canceling licenses and permits
It is important to note that your business remains active with the California Franchise Tax Board until you file your final California Franchise Tax return. Our knowledgeable Los Angeles business dissolution lawyers can help you ensure that you file the proper paperwork for a smooth process.
Employment Laws
When dissolving a business, you must notify your employees and pay them all their wages, accrued vacation time, and potentially severance pay. Keeping a well-documented record of this can help protect you and your employees. Our Callahan & Blaine lawyers can let you know if your employees are eligible for federal or Cal-COBRA, which allows them to keep their health plan after their job ends.
Environmental Regulations
If you own a business involving hazardous materials or have technology you need to remove from your office, it is essential to comply with state and federal environmental regulations to properly dispose of this waste. We can help you understand these rules and how to avoid violating them.
How a Lawyer Can Help With Your Los Angeles Business Dissolution
Business dissolution can be complex, no matter how small or large your team. At Callahan & Blaine, we understand the unique challenges that come with these cases and guide you every step of the way to ensure a smooth transition. We provide comprehensive support, handling every aspect of your case and making a difference in the following ways:
- Trial Experience: While we work hard to help resolve disputes outside of court, we have extensive trial experience and are prepared to present your case to a judge and jury if necessary.
- Insurance Knowledge: Our managing partner, Edward Susolik, has handled over 1,500 mediations in 33 years, making him one of the nation’s leading experts. This perfectly positions us to create nuanced and unique solutions tailored to your business needs.
- Experienced Team: With a 40-year legacy and each member of our team having at least eight years of experience handling complex business law cases, you can trust us to achieve a successful outcome.
- Proven Track Record: Our top-notch services and commitment to excellence have given us a proven track record of success, achieving unprecedented results for our clients.
Our dedicated LA business dissolution lawyers are here to help protect your best interests and business as you go through the dissolution process. We want to help you avoid exposing you and your team to liability by giving you the knowledge you need to make the best decisions for your future and navigate the dissolution rules and regulations.
Seek Guidance From the Trusted Los Angeles Business Dissolution Lawyers at Callahan & Blaine
Navigating the complexities of business dissolution requires experienced legal guidance to ensure compliance with federal and state laws, protect against liabilities, and achieve a smooth transition. At Callahan & Blaine, our professional team has assisted Los Angeles businesses for over 40 years, providing personalized, high-quality legal services tailored to your unique needs. With a proven track record of success and a commitment to excellence, we handle every aspect of your dissolution process, from filing necessary documents to managing disputes.
Let us help you wind up your business efficiently and effectively. Contact Callahan & Blaine today at (714) 241-4444 or visit our contact form to discuss your business dissolution needs and secure the future of your interests.
