Categories: Maintaining a Business

The Benefits of Dissolving Before 2011

Whatever the reason — some companies must “close the door” and stop doing business. Without formally terminating a corporation or LLC, owners could still be charged fees associated with the business. A Corporation or LLC must file Articles of Dissolution (sometimes referred to as Certificate of Dissolution or Certificate of Cancellation) when it needs to terminate its existence. As we near the end of the year, there are many benefits to dissolving before 2011.

There are four main benefits if you dissolve before the 2001. First you will avoid paying 2011 taxes. Even if you dissolve on January 1, you may still pay 2011 taxes. Second, you also avoid filing requirements as well as the cost associated with reporting requirements. Third, dissolution is the only legal way to close a business. Closing the doors or ceasing business activity is not a legal method, and therefore fees and taxes may still accrue. Finally, if your corporation is still active you are still subject to business lawsuits. Dissolution will help you avoid these possible headaches.

MyCorporation can help quickly and efficiently dissolve your business in five easy steps:

1. Fill out and submit the Articles of Dissolution order form.
2. You will find requests for standard contact, billing, and authorization information, plus specific requests regarding your entity type and status, and your corporate office and director information.
3. We’ll complete the necessary documentation for filing and will forward them to you for your signature.
4. You send them back to us and we will file with the state.
5. Once filed with the Secretary of State, the approved documents will be sent via UPS for your records.

MyCorporation will prepare your Articles of Dissolution for review and submission to the appropriate state agency in any of the 50 states. Learn more about dissolution HERE.

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.