4701 Oleander Drive, Suite A
Myrtle Beach, SC 29577
Ready to lock the doors and close your business? It’s as easy as hanging a “closed” sign on the door and moving on, right?
Not so fast…
Depending on the type of corporate structure, operating agreements, assets, and liabilities of the company, there may be actions that need to be taken before making the decision to dissolve the company and before filing the Articles of Dissolution once the decision is made.
“Voluntary dissolution” means that you are making the decision to dissolve the company and pro-actively file the Articles of Dissolution with the SC Secretary of State’s Office.
An “involuntary dissolution” means that you did not follow the necessary steps for dissolving the company – the Secretary of State’s Office will then consider the company abandoned and will eventually “involuntarily terminate” your company.
In most cases, involuntary dissolution is not a good idea – a failure to formally wrap up business and dissolve a company could expose you to future liability and unexpected lawsuits.
The first consideration before dissolving a business in SC is whether you can dissolve the business…
For example, if you have a sole proprietorship you do not need permission and you can make the decision to dissolve the business. Depending on your circumstances, you may still want to consult your SC business attorney to ensure that business assets are disposed of with minimal tax liability and that you do not have any outstanding debt to be collected or creditors that may file suit.
On the other hand, if your business is a corporation or limited liability company (LLC), you may be required to obtain written permission from the other owners, members, shareholders, or board of directors. In some cases, we may be able to administratively dissolve the corporation through the courts without written permission.
In most cases, dissolving your business is not as simple as filing Articles of Dissolution – there are many steps in the process to ensure that you are not breaching contracts, breaching fiduciary duties, exposing yourself to creditors or tax liability, or leaving money uncollected:
Your Myrtle Beach Business Dissolution Lawyer at Axelrod and Associates will help you to determine what steps are necessary to dissolve your business and what needs to be done to wind down operations before filing your Articles of Dissolution. Call today at 843-916-9300 or complete our contact form to set up an initial consultation to find out how we can help.
The fields marked with * are mandatory.