Philadelphia Business Dissolution Lawyer
Shuttering a business isn’t as simple as shutting off the lights and handing the key back to your landlord. Business owners need to properly “wind up” their business, which will protect them from possible lawsuits. Ellenberg Law Group has assisted many owners with winding up their businesses. We can ensure you follow all necessary steps and reduce the risk of disputes over company assets or liabilities. Call our Philadelphia business dissolution lawyer to discuss where you are in the dissolution process and any questions you might have.
We Can Simplify the Dissolution Process
Dissolving your business will typically require the following steps:
- Vote to dissolve. Your company’s organizational documents should state how you can dissolve your company. Typically, this requires a vote of the owners. You should follow the procedure laid out in the bylaws, operating agreement, or partnership agreement. If you don’t, then your dissolution might not be effective.
- Notify the state. You need to let the state know you are dissolving your business. This step is necessary to stop any filing requirements and taxation. Your attorney can fill out all the forms and submit them in a timely manner.
- Notify your employees. You might have obligations under employment contracts if you shut down. You are also obligated to pay out unpaid wages which workers have earned.
- Cancel permits and licenses. This step also protects you from liability in the event someone uses your permit or license to continue to do business. You may also need to abandon a company name (“doing business as” or DBA).
- Notify your creditors and customers. Creditors and customers absolutely must know when you are shutting down. This advance notice can help customers get their orders in on time. If you can’t complete a project, you need to refund payments. You also need to discuss how you will pay your creditors. The risk of a lawsuit is highest when working with creditors and customers in anticipation of a dissolution.
- Pay taxes. You’ll need to submit all payroll deductions and pay other taxes. Your attorney can help.
- Pay creditors. You might need to sell company assets to pay creditors. If you don’t have sufficient assets, you should analyze with a lawyer which creditors to pay.
- Distribute company assets. If any company assets are left, you’ll need to divide them between owners. Your organizational documents should have spelled out how to divide money or assets at dissolution, but some documents are silent on this issue. Disputes can break out anyway if an owner feels entitled to leave with something.
The above is merely an overview of the dissolution process. We can discuss concrete steps for your business in a consultation. Failing to dissolve the right way often leads to endless lawsuits and recriminations, making it hard to move on after the dissolution.
Contact Us to Discuss Winding Up Your Business
Ellenberg Law Group has tackled business dissolutions of various sizes, and we will gladly share our insight with our clients. Our Philadelphia business dissolution lawyer is only a phone call away.
