Dissolution Frequently Asked Questions
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What are Articles of Dissolution?
Articles of Dissolution are legal documents that are filed to officially end the existence of a business, such as a limited liability company (LLC) or corporation. They are the reverse of the Articles of Organization or Articles of Incorporation, which established the business as a separate legal entity.
Why should I dissolve my business?
Dissolving your business is necessary to avoid future fees, liability, and penalties. If you don't file Articles of Dissolution when you close a company, the state will assume that you are still doing business and will continue to expect you to file taxes, annual reports, and pay fees. Dissolving your business also places creditors on notice that your business has closed and you are no longer responsible for their outstanding debts.
What happens if I don't dissolve my business?
If you don't dissolve your business, you can face several negative consequences, including
To properly close your business, you should file Articles of Dissolution with the appropriate state agency, such as the Secretary of State. This will officially end your company's existence, relieve you of future obligations, and protect you from potential liabilities.