Cedar Rapids Dissolution / Liquidation Lawyers
Sometimes, business owners decide that the time for the dissolution and liquidation of their company has come. At that point, business owners must file a statement of dissolution for their company with the state and take other necessary steps in dissolving their company. Unfortunately, the process can be challenging for business owners because of the many steps that must be taken to officially dissolve a company.
It is essential that business owners seek legal guidance on issues that arise in the process of dissolution in order to ensure that their interests are protected. The legal team at Arenson Law Group, PC is prepared to resolve any legal issues that may come along with dissolving your business. Our experienced lawyers have worked with many business owners in Cedar Rapids to ensure that all legal precautions are taken in order to protect their legal and financial interests.
Do I Need a Business Dissolution/Liquidation Attorney?
Dissolution or liquidation of your business may be an incredibly difficult decision to make, since it can feel so personal. After investing so much of yourself into making your company run, it may be difficult to pull the plug. Even if you are ready to bring your business to an end, the processes that must be completed are intensive. It requires a detail-oriented approach to achieve the goal of cleanly dissolving your business. This is where a business dissolution and liquidation attorney becomes an important asset.
When it comes to making sure all of the forms are filled out, taxes and debts are paid, and customers and suppliers are notified, an attorney is the best choice. Do not try to take on the dissolution or liquidation process on your own. An attorney with experience will guide you through the process efficiently so that no final actions that are necessary are left out. You will have peace of mind knowing that the winding up of your company has been accomplished effectively.
Why Choose Arenson Law Group, PC to Handle My Case?
Arenson Law Group, PC attorneys have over three decades of experience to assist you with corporate issues, including winding up business affairs through dissolution or liquidation. Our firm is dedicated to helping you work through all types of complexities, whether they involve final tax payments, paying off debts, selling assets, or any other issue that requires attention at this critical time in the life of your business.
The lawyers at Arenson Law Group, PC pride themselves on being thoughtfully innovative and attentive to what will best serve your needs. Our team conducts research and analysis necessary to be fully prepared to address the unique circumstances present in your situation. We are committed to helping you find the solution that best fits your needs.
We are also dedicated to the Iowa communities around us and take pride in serving businesses of all sizes. We are involved in the local bar association in Linn County and in statewide Bar Association functions. As a progressive business law firm, we are inspired to provide the best possible service to our clients. If you have decided it is time to close your business or you are not sure whether you should, give us a call right away at (319) 363-8199 so that we can assist you.
Common Steps to Dissolving or Liquidating a Business
There are several common steps business owners must take to officially dissolve their business, including:
- Corporation or LLC action
- Filing dissolution or liquidation paperwork with the state
- Filing federal, state, and local taxes
- Notifying creditors and others of business’ end
- Settling liabilities
- Distribution of assets
No matter whether your company is just beginning the dissolution process or in the middle of it, seeking legal guidance can help you solve the legal and financial issues that can arise.
Notifying Creditors, Customers, and Employees
In addition to the legal filings necessary to bring your business entity to an end, there are a large number of people who need to know that you will no longer be in business. It could be easy to forget some of the individuals and entities on the following list, so it is best to let us help you compile a comprehensive list of those whom you should notify. We can assist in making sure that everyone is notified in the best time frame to serve your needs.
- Your Suppliers — It is important to let all of your suppliers know when the last deliver from them is requested. However, it may not be wise to do this too far in advance in case a supplier decides to stop giving you credit or otherwise alter your relationship.
- Your Service Providers — Any other company that provides services to you will need to know you are closing. For certain providers, such as utilities and internet service providers, it will be necessary to notify them of the date service will no longer be needed. Insurance companies may need to know about any risks of liability that you may have going forward so that you retain coverage as necessary even after the business has closed.
- Your Banks and Lenders — Arrangements will need to be made to ensure that lenders are paid. Your bank accounts and credit cards associated with your business will need to be closed and canceled at the end of the dissolution process.
- Your Landlords — If you rent real estate, you will need to inform your landlord of your intent to end your lease no later than the lease provisions provide for. If you are terminating your lease before the lease term is over, you will likely owe for the months remaining in the lease unless your landlord finds another tenant or you make a new deal with your landlord that reduces this amount.
- Your Employees and Independent Contractors — Tell your employees and independent contractors about your expectations as you lead up to the final day you are in business. It may be important to tell only a few employees at first so that early departures are not an issue. However, two weeks’ notice is the minimum that you should ideally give all of your employees.
- Your Customers and Clients — Give your customers or clients notice in advance. Make arrangements to deliver any final projects or goods or services, if possible. If you are unable to fulfill any of your obligations, make arrangements to refund customers or clients as necessary.
Taxes Take Priority
Taxes should be paid before other debts are paid off. Most significantly, if your company had employees, making the final payroll tax deposit is essential. Even if your company was a corporation or LLC, the IRS may still be able to hold you and/or your co-owners personally liable for payroll taxes. Income taxes and sales taxes must be paid. If assets are sold, particular forms must be sent to the IRS as well.
Liabilities and Assets
Liabilities, or anything your company owes, must typically be paid off first. Then any value or assets left in the company can be distributed to the owner or owners. It is best to work with an experienced attorney to make sure your plan to pay off liabilities and make any distributions is sound. In the event liabilities cannot be completely paid off, it may be necessary to discuss filing for bankruptcy. For all of your options, contact us at (319) 363-8199 today.
Speak with a Dissolution and Liquidation Lawyer in Cedar Rapids
Business owners that want to dissolve their company may wish to seek the guidance of a professional business lawyer. Legal assistance can be invaluable in making sure that your business is properly dissolved and legally liquidated. Call Arenson Law Group, PC at (319) 363-8199 to speak with a Cedar Rapids business lawyer today.
Written by James H. ArensonLast Updated : November 22, 2022