A dissolution (also called cancellation) is the way you notify the state that your business is no longer in operation.
What is this?
If you have a corporation, LLC, or LP which is no longer operating for any reason, it is important to dissolve it with the state it was filed in. You must let the state know that it is no longer doing business so the parties involved with the business are not held responsible for any annual fees, taxes, fines, penalties, or other assessments. If your business is still operational, but not in the same state where it was originally filed, you can convert the entity instead, which will allow you to maintain the same employer identification number (EIN) and business history. The details of the business must be wrapped up by filing the appropriate paperwork with the state and IRS.
The process usually involves:
- Filing a document with the state your business is filed in
- Paying the state fee associated with that filing
- Notifying the IRS
Start Your Business Structuring Plan in 30 Minutes For Free
- Personalized structure created by a senior advisor
- Designed to protect your assets and minimize your state and federal taxes
- Starting your plan is free. There’s no obligation.
Why Trust Anderson For Your Business Structuring Needs?
Comprehensive Assessment Tailored To You
The wrong setup of your business now could mean more taxes and liability later. That’s where we’re really different. We take a comprehensive look at your situation not only from a legal asset protection perspective but also from a tax savings and financial planning perspective.
Experience You Can Trust
Unlike other law firms, our consultants consist of attorneys and planners who travel nationwide to speak at conferences and seminars on subject matters concerning asset protection,
Take a look at these actual client stories to see how much of a difference an Anderson plan can make.
We set up a Nevada LLC for a client with significant savings. She was sued 3 years later for an environmental claim stemming from property she owned over 30 years before. Plaintiff wanted over $2 million in damages for the cleanup. After we disclosed that her assets were protected by a Nevada LLC and a HELOC on her residence Plaintiff accepted less than $100k in a settlement.
A bank wanted to pursue one of our clients for a deficiency judgement ($5.5 million) for commercial real estate he lost in foreclosure. Once the bank found out how we protected all of our clients remaining assets with LLCs and a Nevada holding LLC the bank’s attorney stated “we decline to seek a deficiency judgment given the complicated structure you have weaved for yourself”.
Our client purchased property in a LLC and it was later discovered the soil beneath the property was contaminated. The state sued the LLC to clean up the land. Client walked away from the property without any personal liability. Without the LLC he would have been on the hook for over $1 million.
Your Custom Entity Blueprint
Speak with an Anderson Professional Advisor to get your FREE business planning blueprint to determine the best entity structure plan for you and your unique situation.