The decision to dissolve a business, and the process of dissolving a business, can be different based on the type of business. Dissolution is always an important decision for any business that should be considered carefully. Sole proprietors can dissolve their businesses unilaterally, however, partnerships, LLCs and corporations require that the co-owners of the business agree to dissolve the company according to the articles of organization guidelines.
It is important to be familiar with the dissolution process and dissolution steps for closing the business type in question. Failing to legally dissolve a business can create continued liability for taxes and filings for an LLC or corporation. It is also important to file any necessary dissolution documents.
Businesses that are operating as a general partnership or sole proprietorship may not have the same formal dissolution requirements, however, it can be useful regardless to notify the government and creditors of the closure. In any event, it is important to be familiar with business dissolution requirements for the applicable business type and understand how to comply with them.
In some circumstances, there are addition steps that may be both required, or can be a good idea, when dissolving a business. Because of the significance of properly dissolving a business, it can be helpful for business owners to have appropriate guidance throughout the dissolution process. Dissolution can be a complex, and multi-step, process but it can also be easily managed with the right knowledge and expertise. Whatever the business type, or the business needs, familiarity with the process of dissolving a business can help alleviate dissolution anxiety or concerns.
Source: U.S. Small Business Administration, “Steps to Closing a Business,” Accessed, Sept. 12, 2015