There’s a rise of divorces this pandemic, and so, too, are business divorcers on the rise!
Partnership dissolution refers to the termination of a partnership as well as the cessation of its various business activities. … When a partnership dissolves, the partners share equally when it comes to profits and gains; however, they also share equally in the distribution of losses as well.
Dissolution of a Corporation is the termination of a corporation, either a) voluntarily by resolution, paying debts, distributing assets, and filing dissolution documents with the Secretary of State; or b) by state suspension for not paying corporate taxes or some other action of the government. The rights and responsibilities regarding the dissolution of a corporation is generally set forth in the company bylaws.
Ending an limited liability company’s (LLC) existence as a separate legal entity is a multi-step process that involves dissolving, winding up affairs, liquidating assets, paying creditors, and more. This process requires compliance with both the formation state’s LLC Act and the LLC’s operating agreement. Many operating agreements set forth when and how an LLC will dissolve, wind up, liquidate, and distribute its remaining assets to its members. If not, the statute’s default provisions have to be followed. In addition, the statutes have some requirements that must be complied with that cannot be altered by the operating agreement.
Contact Thaler Law
Dissolving a partnership, LLC or corporation can be complicated and technical. There are many benefits to having an experienced attorney oversee your dissolution. Contact an experienced attorney from Thaler Law who can help you understand your legal rights, and what your next best steps should be. Contact us at 714-869-2900 or online today for your free consultation.