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Commonly Asked Questions about Corporate Dissolution

Reasons for a Business Dissolution Low Cash Flow. Bad Management (or Accounting) Too Much Competition. Economy. Product Liability. Bankruptcy. Failure to plan for the future. Disagreements between Partners.
Although some people confuse dissolution and termination, dissolution does not terminate an LLCs existence. What it does is change the purpose of its existence. Instead of conducting whatever business it conducted before, a dissolved LLC exists solely for the purpose of winding up and liquidating.
Once a company is dissolved, it no longer exists as a legal entity and cannot conduct business or enter into contracts. Dissolution may also trigger a number of certain legal obligations, such as the distribution of remaining assets to creditors or shareholders. It also might involve the filing of final tax returns.
Dissolution. Termination of a businesss existence.
A dissolution is a formal closure of a business with its state of incorporation. Formally closing a business means the registered company is no longer seen as active through the eyes of the state. If an LLC or corporation does not file articles of dissolution, the state will continue to see the business as active.
Shareholders are liable to creditors and claimants of the now dissolved corporation up to the amount of assets distributed to the shareholder upon the dissolution of the corporation.
When a company has been dissolved, it will cease to exist as a legal entity. All trade will stop, the companys name will be removed from the Companies House register, and it will have no further filing requirements.
There are 3 main ways a company can be dissolved administratively, voluntarily, and judicially. Three Types of Dissolution - Apex Law Group apexlg.com three-types-of-dissolution apexlg.com three-types-of-dissolution
Corporate or LLC dissolution is an official filing with the state where your business was originally formed. The action will terminate the legal existence of your company wherever it does business.