Business Dissolution in Florida: 3 Things You Should Know
Written on February 26, 2020
Whatever the reason you’re winding down your company as a business owner, you’re probably aware that you need to comply with relevant federal and state legal requirements for dissolution in Florida. After all, an entity doesn’t just cease to exist by closing its doors. However, there’s a big difference between knowing that you’ve got a few To-Do’s and actually getting them done. If you don’t follow the proper steps that apply to your specific circumstances, you’re not maximizing your interests as a stakeholder
If you’re considering wrapping things up with your company, the first thing you should know is that the best strategy for protecting your investment is seeking help from a Clearwater, FL business dissolution attorney. You might also benefit from reviewing a few other general considerations.
(1) There are multiple steps involved with dissolution:
You’ll need to complete various tasks associated with closing your business, so proper preparation is essential. Though the details vary depending on your specific situation, the steps include:
- Vote and Resolution: Any business with multiple stakeholders, including corporations, LLCs, and partnerships, must follow the procedures listed in the organizational documents. In most cases, you’ll need consent from owners to dissolve a business – whether it’s a majority, two-thirds, or unanimous vote. Once you officially conduct a vote, you’ll need to record the matter through a resolution or include it in the meeting minutes.
- Filings with the State of Florida: You must inform the Florida Division of Corporations of your intention to dissolve your company. In your paperwork, you’ll need to include business debts, legal liabilities, your resolution to dissolve the business, and the manner in which you distributed assets to owners.
- Cancel Licenses and Permits: If you’ve maintained any credentials in the name of the business, you should reach out to the appropriate government agency to inform them of dissolution.
(2) You must notify and resolve creditor claims:
In addition to the above steps, you must pay any known debts and notify creditors that you are winding down your business. Close your bank accounts and cancel all credit cards. If company assets are insufficient to cover the amounts you owe, you may be able to negotiate to resolve these claims. However, creditors may want to review any company assets as collateral for the debt.
(3) Your business must still comply with relevant tax laws:
Even once you’ve completed the necessary steps, keep in mind that you may have incurred tax liability for the tax year in which you dissolved your company. You must file official forms with the IRS, state and local agencies to inform them that you ceased operations.
Contact a Clearwater, FL Business Law Attorney for More Information
At Clearwater Business Law, our team is experienced in handling business dissolution for clients throughout Pinellas County and the surrounding area. We can provide advice on actions that serve your interests, and counsel you during the entire process. To learn more about how we can assist with winding down your Florida business, please call our office at (727) 785-5100 to schedule a consultation with one of our skilled lawyers.