When you start a business, you put so much time, money and hard work into making it a success. Sometimes, however, tough decisions have to be made when revenues are below what is needed to sustain the business. How do you close a business entity such as a corporation or limited liability company? Here is your five step action plan:
- Shareholder/Member vote to dissolve the business and record the meeting and vote in the company’s official minutes.
- Obtain tax clearance from the New York state tax department and its consent to the dissolution.
- Prepare and file a Certificate of Dissolution with the State Department of Corporations.
- Wind up the business’ final affairs, including giving notice to creditors.
- Distribute remaining assets and funds to investors and equity owners.