Business dissolution Regrettably, not all businesses succeed to the level their owners might have once hoped. Dissolution can be caused in many ways, including the failure to file annual reports or pay certain taxes in the state of incorporation, bankruptcy, or voluntary dissolution by business owners.
WHY IT’S IMPORTANT
If your company is ceasing operations or is no longer in business, filing Articles of Dissolution legally ends your company’s existence in your state of incorporation or in your state of qualification, if you had registered to transact business in another state (foreign qualified).
Companies incorporated or foreign qualified in a state face annual report and taxation requirements in that state. Unless the state knows your company is no longer in existence, those obligations will continue. Typically late fees and penalties will continue to accumulate. Dissolving your business with the state will end these obligations.
When a business is ceasing operations, the owners typically have a lot on their minds and additional steps to take. Let California New Business Bureau handle the process of ending your business with the state, so you can concentrate on other requirements.
KEEP IN MIND
There are other steps that should be taken as a company is ending operations, including filing necessary federal, state, and local tax forms and notifying creditors.