Business Dissolution
Business Dissolution
A dormant entity still costs you every year. Closing it properly is what stops the filings, the fees and the exposure.
Business dissolution is the formal process of closing a corporation or LLC. It involves bringing the entity current on all taxes and filing the necessary documents with the Secretary of State and the Franchise Tax Board, so the company stops accruing annual obligations it no longer earns anything to cover.
Corporation dissolution
Tired of paying taxes every year for a dormant corporation? Have Tresp Law, APC dissolve your corporation for you. This process includes making sure the corporation is up to date on all taxes and filing the necessary documents with the secretary of state and franchise tax board.
LLC dissolution
Tired of paying taxes every year for a dormant LLC? Have Tresp Law, APC dissolve your LLC for you. This process includes making sure the LLC is up to date on all taxes and filing the necessary documents with the secretary of state and franchise tax board.
What dissolution involves
- Entities handled
- Corporations and limited liability companies
- Step one
- Confirm the entity is up to date on all taxes
- Step two
- File the necessary documents with the Secretary of State
- Step three
- File the necessary documents with the Franchise Tax Board
- Why bother
- A dormant entity keeps generating annual filing and tax obligations until it is formally dissolved
- Related
- Business formation and business resolutions
Dormant or dissolved — what is the difference?
| Dormant entity | Properly dissolved entity | |
|---|---|---|
| Still on file with the state | Yes | No |
| Annual filing obligations | Continue | End once dissolution is complete |
| Annual tax obligations | Continue | End once the entity is closed out |
| Registered agent still required | Yes | No |
| Owner attention required | Every year, indefinitely | Once |
Simply walking away from an entity does not close it. Until the dissolution documents are filed and the tax accounts are settled, the obligations keep running. Have Tresp Law, APC handle the dissolution for you.
Contact us today
The possible future of your business is no small matter to us. We take the time to meet with you personally either in-person or through video conference technologies such as FaceTime, Duo, Skype, or Zoom. Tresp Law, APC’s advanced cloud-computing real-time collaboration technologies enable us to assist you remotely from our offices in Cardiff-by-the-Sea, Mission Brewery Plaza in San Diego, and Kemmerer, Wyoming. If you need a proactive, knowledgeable, and effective Business Planning lawyer, call us today: (858) 248-2779 or contact us online to schedule an initial consultation.
Related services
Common questions
Frequently asked
Why should I dissolve a business I no longer use?
Because a dormant entity is not a free one. It remains on file with the Secretary of State, keeps its annual filing and tax obligations, and still needs a registered agent. Dissolving it formally is what actually stops the yearly cost and the paperwork.
What does dissolving a California corporation involve?
Making sure the corporation is up to date on all taxes, then filing the necessary documents with the Secretary of State and the Franchise Tax Board. Both halves matter — a filing made while tax accounts are still open does not cleanly close the entity.
Is dissolving an LLC different from dissolving a corporation?
The sequence is the same: confirm the LLC is up to date on all taxes, then file the necessary documents with the Secretary of State and the Franchise Tax Board. The specific forms and the internal approvals the owners have to document differ between the two entity types.
What happens if I just stop filing?
The obligations do not stop with you. The entity stays on the state’s records and continues to accrue what it owes, which is the exact situation most of our dissolution clients are calling about — they stopped using the company years ago and are still paying for it.
Can you dissolve an entity that is behind on its taxes?
That is usually the starting point. The process includes making sure the corporation or LLC is up to date on all taxes before the dissolution documents are filed, so bringing the entity current is part of the work rather than a prerequisite you have to solve first.
This page is general legal information, not legal advice, and does not create an attorney-client relationship. California trust and probate law is fact-specific and deadlines are unforgiving — please speak with a qualified attorney about your own circumstances.
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