“Dissolving a business can often be the start of a new business or a business transition. When a business is no longer active, it’s important to dissolve the business”Â says Deborah Sweeney, CEO ofÂ MyCorporation.com.
She adds, “by leaving an inactive business open without properly dissolving it first, the owners of said business are at risk of liability.”
MyCorporation.com has been in the incorporation and LLC formation industryÂ for the pastÂ 15 years, and has built a reputation for exemplary customer service. As a service to small businesses, they’re notifying businesses of the importance of dissolving inactive businesses.
In order to terminate a business, a Corporation or LLC must file Articles of Dissolution. If the dissolution is not filed, the Corporation or LLC is still considered to be in existence and must adhere to specific obligations such as filing annual reports and paying state fees and taxes.Â Avoid taxes and potential penalties in 2014 andÂ file a dissolution to ensure your corporation or LLC has tied up all loose ends.
Ryan Kulp, of RyancKulp.com, dissolved an online retail business a few years ago and learned that dissolving a business is a step by step process.
“You need legal acknowledgment first which means contacting the Secretary of the State where the corporation or LLC was filed in and telling them the business is shutting down. You’ll also need to contact the EFTPS which handles quarterly tax withholding and tell them you are shutting down and reach out to your state’s Department of Labor and tell them there are no more employees or revenue streams.”
“Not filing returns, taxes or otherwise, can cause penalties and filing ‘zero’ returns takes a lot of time for a business that doesn’t exist anymore,” saidÂ Ryan Kulp.
The end of the year can be a great time to tie up loose ends, Sweeney says.
“MyCorporation is known for helping business owners and entrepreneurs start new businesses, and our full service business offerings, including dissolution filings, can be useful to business owners at any stage.Â If a business owner is no longer doing business, filing a dissolution before the end of the year is an important step.”