Legal Question in Business Law in California

Re: Dissolution

If you don't know how to do it yourself, you should to make sure the paperwork and clearances are done for IRS, Corp Commissioner, etc. Feel free to Contact me.

Re: Dissolution

You would be most unwise if you don't have an attorney handle this. If you do it yourself, then you only have yourself to blame if you get sued out of the blue.

Re: Dissolution

A corporate dissolution is the type that you might be able to figure out on your own and can also be quite complicated. If not done correctly, the shareholders could be unnecessarily exposted to liability. Consulting legal counsel is alwways the best option. Feel free to contact my office if you need further assistance.

Re: Dissolution

A lawyer would never advise a client either to leave an abandoned corporation undissolved, or to attempt to do the dissolution without lawyer assistance.

On the other hand, experience and a sampling of Secretary of State corporate records shows that a high percentage of corporations that have ever been formed in California have expired through suspension and have never been through a formal dissolution. I'd say 85% of corporations that are formed fail to operate at all beyond the third year of their existence, and of these, 80% just stop paying franchise taxes and filing officer reports, and thus perish by suspension, leaving only 20% that cease to exist for other reasons, such as dissolution or merger.

I would say that any corporation that has actually conducted a significant amount of business, such as taking investment money from the public, hiring employees, obtaining credit, etc. should dissolve formally and with the assistance of a lawyer. This would also be true of any corporation formed to carry out a licensed activity (other than a routine business license), such as real estate, contracting, liquor, etc.

Re: Dissolution

If you want it done correctly and fairly of course you should. Contact me directly. 19 years experience.