Officially terminating a business in Florida is known as “dissolution,” and companies must follow dissolution procedures to limit their liability during and after the termination process. Dissolution can occur voluntarily, with an agreement of all those with an interest in the business, or involuntarily through a court order. In either event, anyone involved with the business should consult with an attorney, who can help stakeholders meet all legal requirements and correctly divide assets.
Business Dissolution Procedures
The type of business entity and the written documents that govern the business will determine whether shareholders need to take a vote for dissolution. If all the business shareholders approve the dissolution, a written record of the consent should be secured to avoid potential issues.
Although not required, a document called the “articles of dissolution” should be filed with the state. This document helps to limit liability and put the state on notice that the business no longer exists. Filing articles of dissolution is a simple procedure that can be completed electronically.
Winding up the Business Involves Division of Assets
After the dissolution of the business, any remaining issues such as dividing the company’s assets and satisfying outstanding liabilities, are referred to as “winding up” of the business. This should follow the written documents that govern asset division, or the Florida laws if no documents address the asset division process. An attorney can help throughout the asset division process.
Supply a Dissolution Notice to Creditors
A crucial step in business dissolution is to provide notice to any business creditors. This creates a time limit for any claims that might be brought against the business. Many businesses neglect to follow this important step. An attorney can help identify the creditors and distribute the proper notice to limit liability.
Contact the Khonsari Law Group for Business Litigation Attorneys
The attorneys at Khonsari Law Group have experience assisting with the complicated business dissolution process. They can help protect interests and limit liability. Contact the Khonsari Law Group to learn more about your options.