Business dissolution is a radical step that can be taken during a lawsuit or performance of a mediated settlement agreement. When a business is dissolved, it legally ceases to exist. It may be necessary to dissolve a business if its debts or legal liabilities become too serious to bear.
Just because a business has been dissolved, it does not mean that all of its equipment and other capital assets become useless. The dissolution of a business includes the disposal of its assets, which may allow principals of the dissolved business to retain control of items or profit from their sale.
Likewise, the client relationships, expertise, and other key intangibles of a dissolved business do not just go away. However, under the right circumstances, pending litigation and other actions against the business are terminated. This makes dissolution an attractive option in some cases.
How Does Business Dissolution Work in Florida?
The law dictates several steps that must be undertaken before a business can be dissolved.
Some of these include:
- Holding an official vote to close the business, in the case of partnerships or corporations
- Dissolving your business with the government by serving appropriate notice to the state
- Canceling all relevant permits, licenses, and “Doing Business As” names by a given date
- Paying off taxes and debts or making other appropriate arrangements concerning them
- Notifying all stakeholders, including creditors, customers, and your entire workforce
Some of these steps can be undertaken through SunBiz, the online servicing agent for businesses in the state of Florida. However, many of them are multi-step procedures that must be carried out through certified mail or other means that can be quite time-consuming.
All of these steps become even more urgent when they are undertaken in conjunction with a legal settlement or in relation to pending litigation. It’s necessary not only to take action quickly, but lay the foundation to protect your interests as you move forward in your business life.
Making Business Dissolution Easier for Florida Clients
Executives and investors rarely have time in their schedule to manage all the steps involved in business dissolution, especially when they must balance other legal concerns at the same time.
Business dissolution may seem extreme, but it is a responsible and definitive way to resolve certain business disputes. To make that process truly successful, it is essential to ensure all assets, liabilities, and questions are addressed. This is especially true if bankruptcy is a factor.
With years of experience helping clients untangle thorny dispute resolution issues here in the Sunshine State, my philosophy is to provide expert advice and process management that allows my clients to make informed decisions. You can confidently leave day-to-day details to me.
To find out more or get started, contact me today. I look forward to discussing your situation and how I can help you achieve peace of mind.