Owners and operators choose to shut down businesses for a variety of reasons. From retirement to cash flow problems, these reasons have little impact on the process of business dissolution in San Antonio.
If you feel it is time to close your doors for good, having the support of a dedicated business dissolution attorney could help. Attorney Sasha Begum has helped countless owners and operators with every aspect of their business, from formation to dissolution, so you can rely on her experience during your transition.
First and foremost, it is important to recognize that there are more steps for winding down certain business entities compared to others. For the most part, the formality of this process depends on the amount of effort it takes to create a business.
For example, dissolving a partnership does not require any formal paperwork since the owners of these companies do not have to file or register with the state to begin with. However, there are still important steps to take in these cases, like paying debts, distributing assets, and canceling licenses.
This is very different from the process of winding down a corporation. There are multiple filings that must be made, and the failure to comply can lead to additional costs and consequences. Thankfully, an attorney could help you navigate the process of dissolving a San Antonio business.
While there are some additional steps you may have to take depending on the structure of your business, the general process of dissolving a business in San Antonio is the same.
Many business entities—particularly corporations and LLCs—can only dissolve following a vote. This process cannot begin without first securing the necessary approval. How this step must play out depends in large part on the documents that govern the business. From LLCs to corporations, these companies must follow the dissolution provisions on the agreement used to form the company. This will also typically determine the threshold for the vote, which could be anything from a simple majority to a unanimous decision.
LLCs, in particular, also need to have tax clearance before they can wind up. According to state law, these companies need a Certificate of Account Status before they can dissolve. These documents can be obtained online and used to show that there is no outstanding tax debt.
It should come as no surprise that companies of all types will need to cease business operations once they decide to wind down. This means no longer taking orders or making sales. The operations are considered closed once all outstanding business has been completed.
Any creditors should also be made aware that the business is closing. This is because companies generally must resolve any outstanding debts before they liquidate. When that is not possible, bankruptcy is the remaining option. Once creditor claims are addressed, any remaining assets can be liquidated and distributed to the owners.
If you have questions about the process of business dissolution in San Antonio, Begum Pelaez-Prada, PLLC, has the answers. Our attorneys could assist you with every step of the process from beginning to end. Reach out to our firm and schedule a consultation to discuss winding down your business.
