A Quick Guide To Business Dissolutions In Long Beach, California
The formal process of ending your business' existence as a state-registered business entity and putting it out of reach of creditors and other claimants is known as business dissolution.
Here's a quick guide on Business Dissolution in California, as often handled by Long Beach Business Law Attorneys.
Businesses can be dissolved involuntarily by a court order or voluntarily by the proprietors. Corporations can also be dissolved by a vote of the shareholders, partnerships can be dissolved by the partners, and LLCs can be dissolved by a vote of the LLC members.
California's Corporate Dissolution Requirements
To voluntarily dissolve your firm, you must follow certain legal procedures. Depending on the sort of corporation being dissolved, the criteria may vary.
Corporations may voluntarily wind up and dissolve under California Corporate Code 1900 if at least 50% of the outstanding shares vote to do so.
Alternatively, a corporation may dissolve with the board of directors' approval if any of the following conditions are met:
The company has filed for Chapter 7 bankruptcy.
There have been no shares issued by the company.
For at least five years prior to the passage of the resolution electing to dissolve the corporation, the corporation had sold all of its assets and had not conducted any business.
If the following conditions apply, the majority of directors or, if no directors have been chosen, the incorporator can choose to dissolve the corporation if the following applies:
The company has been around for less than a year.
Except for certain tax liabilities that will be accounted for, the corporation has no debts or liabilities.