Business Dissolution Can Be A Tough Process That Often Requires Dispute Resolution
Businesses decide to call it quits for many different reasons. Whatever the reason, terminating a business entity is a multi step process. It involves much more than simply ceasing operations. From a legal standpoint, the business must wind up its affairs and ultimately file a certificate of termination with the Texas or other applicable Secretary of State.
The decision to dissolve a business typically involves a triggering event such as an action by the board of directors and a consent vote by shareholders. The organization’s governing documents often set forth the triggering events for dissolution. Business organizations can also be terminated involuntarily through court order.
For domestic businesses in Texas, the state Business Organizations Code governs the winding-up process. It requires taking steps such as:
- Providing the appropriate legal notices
- Satisfying debts and liabilities
- Collecting on accounts
- Valuing and liquidating business assets
- Distributing any remaining proceeds
Important accounting and tax considerations also come into play during dissolution.
Navigating The Challenges Of Dissolution
Because dissolving a business involves so many moving pieces, professional legal guidance is indispensable for moving ahead with confidence. At Stephen Kaplan, P.C., our attorney brings nearly 40 years of business law experience to the table. Based in Dallas, we represent small- to midsized businesses and their owners throughout the DFW area.
Whether you are looking for guidance on how to dissolve an LLC, S or C corporation, partnership or other business entity, we can help.
Our lawyer is also well-equipped to handle any dissolution disputes. Dealing with disagreements may require pursuing litigation or alternative dispute resolution. It may involve negotiating and drafting a partnership dissolution agreement or similar binding contract. We have the experience and ability to advocate for your interests through any of these methods.