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Tag: closing a business

Checklist for Business Dissolution Can Help Ease the Process

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Sales & Dissolutions on Thursday, December 4, 2014.

When a company owner decides — for whatever the reason — it is time to close up shop, something that seems should be such a simple process can actually be quite complex. Certain guidelines for business dissolution may apply, and those that do must be followed to ensure a smooth completion of the process. Creating a checklist of all procedures that apply to California businesses can provide owners with a simple and straightforward guide, which can be used to ensure everything is handled appropriately.

The size of a business can certainly change the number of steps that must be followed before doors are officially closed. Owners of large corporations or bigger businesses simply may be required to handle more than those of smaller companies. However, there are some procedures that are required regardless of company size, some of these could include: 

  • Filing appropriate IRS forms
  • Collecting assets
  • Resolving debts
  • Publishing notice of intent to dissolve
  • Filing any necessary documents with the state tax authority

These procedures are just a few of many that may apply to closing out certain businesses. An experienced business law attorney can help by providing a list of state requirements that are specific for any business type. Along with providing assistance in creating a procedural checklist, an attorney can ensure all legal bases are covered so business owners can close out their company with as few legal issues as possible.

Business law attorneys are available to help company owners in California through every stage of business ownership — from opening and operating to closing up shop. While business dissolution can be complex, it doesn’t mean the whole process has to be a nightmare. Creating a procedural checklist and seeking legal assistance, when needed, can make the process easier to handle.

Source: FindLaw, “Dissolution and Winding Up Checklist“, Dec. 4, 2014

closing a business, Sales & Dissolutions

Business Dissolution May Not Be Bad News in California

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Sales & Dissolutions on Tuesday, December 10, 2013.

Usually, when a business shuts down it is bad news for the company, its owners and its executives. This generally means that the business did not produce enough profit to survive in California or in any other state. However, one company’s recent business dissolution announcement is actually being received as good news by many in the company as well as the company’s business partners.

The company, American Car Care Centers Inc. (ACCC), is one of the largest groups in North America that is designed to serve the interests of tire dealers. The company recently announced that it will dissolve the business organization by the end of Jan. 2014. The marketing organization represents 16 tire dealer companies, which are also considered shareholders in the corporate entity.

ACCC stated that changes in industry dynamics prompted the board of directors to dissolve the company. However, the company’s President and CEO explains that the decision to end the business is a sign of success. He said that the decision to dissolve is based upon member distributors outgrowing the organization’s structure. Therefore, the member distributors have benefited from being involved in the organization, which means the ACCC succeeded in its mission.

On the other hand, companies in California or in any other state which decide to initiate business dissolution usually do so because they were not able to turn their struggling businesses around for one reason or another. Many times this is caused by drastic changes in the economy which may be out of the hands of the business owners. However, this also does not have to be bad news since this will allow the business owner to move on to the next chapter in his or her life.

Source: Tire Business, ACCC to dissolve; group’s member distributors ‘outgrow’ structure, Dave Zielasko, Dec. 6, 2013

closing a business, Dissolution, Sales & Dissolutions