How To Dissolve Your Florida Business Smoothly

No one wants to consider dissolving their business in most situations. However, there may come a day when it becomes necessary, and if that does occur for your company, it is imperative that you and your partners understand how to do it well. Contacting a knowledgeable attorney is crucial; if you do not, you may face unintended tax or other financial consequences.

Why Dissolve?

There are several reasons why a business would choose dissolution or be forced to do so, from a simple failure to profit to a court order demanding a shutdown. While the reason for dissolution will matter in terms of handling the people involved, it does not overtly affect the procedure for doing so. Except for sole proprietorships, consent must be obtained from the business’ owners before dissolution can go ahead.

In smaller businesses, consent may be obtained more easily simply because owners are more likely to be involved in the day-to-day operations of the business, and thus are more easily able to see that the enterprise is in trouble. A larger business with shareholders may have a more difficult time convincing them that dissolution is necessary, though it is far from impossible to do so.

Three Distinct Steps

Once consent is obtained, there are three steps that must be performed to dissolve a Florida enterprise. The first is to file articles of dissolution, and in Florida, this has to be done under the specific law that governs your type of business. For example, a partnership must dissolve under the aegis of the Florida Revised Uniform Limited Partnership Act. The second step is to notify both state and federal tax agencies, and the third is to notify the business’s creditors, who can be anyone from vendors to customers.

Once a company is officially dissolved, Florida law states that it can no longer do business, aside from winding up its internal affairs – for example, things like gathering its assets and making plans for the payment of any lingering debts. This also includes dividing up any assets or individual debts that individual owners might be entitled to (or responsible for). This can be a confusing process, and can even result in your being saddled with debt you cannot pay. Having an experienced attorney to guide you can help clear up matters.

Contact A Seminole, FL Business Law Attorney

It can be tempting to simply want the process of dissolution to be all over quickly, but if you neglect any obligation or detail, it can come back to haunt you in the end. A Florida business law attorney from the Hunt Law Group can help you properly dissolve your enterprise, so that you can focus your energy on what comes next. Call our office today to schedule a consultation.

Source:

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0607/Sections/0607.1402.html