Categories: Business Basics

Closing a Company the Right Way

It is an unfortunate part of the entrepreneurial world that some businesses end up closing their doors. This is a hard thing for business owners to do and comes after lots of hard work, sweat, and sometimes tears. Despite these difficulties, closing down a business is not as easy as closing the doors. If it is not done the right way, a business owner can be subject to fees and penalties associated with the ongoing existence of the business.

For a company to truly terminate its existence, it needs to file Articles of Dissolution with the state where it was formed. This notifies the Secretary of State that the corporation or LLC will no longer be in existence or functioning. The exact requirements for filing Articles of Dissolution vary depending on the jurisdiction, but it is important that they are filed.

Without filing the Articles of Dissolution the state will not know that the business is no longer in existence. In addition, filing the Articles of Dissolution will stop fees that would normally be due if the business were operating. This is a formality that may seem like a pain, but it can actually end up saving a business-owner money in the long run. If several years go by without dissolving a company, the company can be assessed hundreds, and maybe even thousands, of dollars in fees and non-compliance penalties. Other possible penalties include continued tax liability, continued personal liability, inability to distribute assets, need to file annual reports, and future liability from the products and services sold by the entity. No business owner wants the insult of more fees and penalties added to the injury that comes from having to close a business.

MyCorporation can help file the Articles of Dissolution for submission to the appropriate state agencies. This can help alleviate the headache that comes from having to wade through these documents and file them with by yourself or using the costly services of an attorney. It will also save you money in the long-run. Call MyCorporation today and speak with one of our customer service people about how we can help.

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.

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Andrea says:

16 years ago at 5:23 AM

If you have been thinking about starting your own business, now is the time. It’s no secret that the economy is going through some difficult times, but entrepreneurs with good ideas and the desire to succeed can help turn our economy around. Deborah Sweeney, General Manager of MyCorporation explains “We’ve been successful throughout the ups and downs of the economy over the last decade. We know that small businesses are key to driving economic growth, from the creation of jobs, to stimulating commerce. Right now, MyCorporation has the opportunity, and we welcome the responsibility, to give back to the business community and drive our nation back to prosperity."

In order to do our part to help, MyCorporation, an Intuit company, is offering FREE incorporations and LLCs - eliminating our service fee of $149 - from December 1st through December 5th, 2008. Call MyCorporation at 1-888-692-6771, or visit http://www.mycorporation.com to learn more. Use coupon code MYGIFT to save $149 on the formation of a new corporation or limited liability company. Note: document shipping, state fees, publication fees, and additional product fees will be charged at regular rates.