Due to the economic shutdown in 2020, many business owners are choosing to close their doors instead of struggling to reopen and stay afloat. There are several other reasons why companies might shutdown permanently, as well, but no matter what your reasons might be, you cannot simply walk away from a corporation and never look back. Instead, you should consult with a business lawyer in San Francisco about how to properly close your corporation.
There are legal tasks that corporate owners must complete to move on from their business with minimal personal risk or liability. Some of these include:
- If you have multiple owners, you must vote to close the corporation according to the company’s organizational documents
- Collect on all outstanding accounts
- Sell your remaining inventory and equipment in accordance with California bulk sales laws
- Cancel your fictitious name, as well as any licenses or permits held by the corporation
- Notify employees, customers, vendors, creditors, and more that you are going out of business
- Terminate your commercial lease if necessary (and if possible) with the proper notice to the landlord
- Pay the final corporate taxes
- Submit your final payroll
- Pay your corporate debts if the company has the assets to do so. Some corporations must file for bankruptcy to resolve business debts
- Close all business financial accounts
- Distribute remaining assets among the various owners
- Dissolve the corporation with the government by submitting a certificate of dissolution to the California Secretary of State, among other forms
Contact a Business Lawyer in San Francisco for More Information
The process of winding up a corporation can be complicated and tedious, but every step is important. You should not hesitate to seek guidance from a San Francisco business attorney from Primum Law Group. Call 415.659.7975 or contact us online for a consultation today.