The reasons to close a business vary. Some entrepreneurs do it out of necessity, knowing that the business has simply run its course. Others may choose to close one business in order to start a new venture and to focus their attention on the new endeavor.
Closing a storefront requires more than simply locking the doors and putting up an “out of business” sign on the door. It’s important to properly file a dissolution and dissolve the business with its state of incorporation. A dissolution is a formal closure of a business with the state. Businesses may be voluntarily or involuntarily dissolved. A voluntary dissolution, for example, is one where a small business owner chooses to dissolve the business and file articles of dissolution to terminate it. Involuntary dissolutions, on the other hand, may occur to businesses in bad standing with the state. If these businesses do not take action to get back into compliance, the state may dissolve the business, and even decide to shutter it for good.
How do you file for a dissolution? Let’s take a look at what it means to properly dissolve a small business.
Dispatches From The Front 