What to Do When Your Start Up Venture Fails

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:

  1. Shareholder/Member vote to dissolve the business and record the meeting and vote in the company’s official minutes.
  2. Obtain tax clearance from the New York state tax department and its consent to the dissolution.
  3. Prepare and file a Certificate of Dissolution with the State Department of Corporations.
  4. Wind up the business’ final affairs, including giving notice to creditors.
  5. Distribute remaining assets and funds to investors and equity owners.