Business Dissolution Business Law in Spartanburg, SC
Businesses dissolve every day. Sometimes, a dissolution is voluntary while other times, an adversarial dispute results in the dissolution of a business. Regardless of the circumstances surrounding the dissolution of a business, it is always important to work with a Spartanburg business dissolution lawyer.
What is Business Dissolution?
In its simplest terms, business dissolution occurs when a business dissolves and no longer operates as a company. However, the steps and legalities involved are much more complex than that. When the dissolution of a business is quite straightforward, it is not usually necessary to go to court and have a judge determine certain terms of the dissolution. On the other hand, when partners or others involved in the business disagree on assets or control of the business, this is sometimes necessary.
Just like marriages, businesses dissolve for a number of reasons. Some businesses cannot pay their debts and end up filing for bankruptcy. Others may dissolve because a dispute arises that has no viable solution for the company. In most cases, businesses dissolve voluntarily.
Types of Voluntary Dissolution
Voluntary dissolutions occur for a number of reasons, and in a number of ways, depending on the type of entity. The most common types of voluntary dissolution are as follows:
- Corporate dissolution: Directors or shareholders may decide, usually by a majority vote, to dissolve the corporation.
- Partnership dissolution: One or more partners may decide to dissolve the business.
- LLC dissolution: Typically, the operating agreement or Articles of Organization will determine how to dissolve an LLC. In most cases, a majority vote by the LLC members is needed to dissolve an LLC.
Issues Involved in Business Dissolution
Business dissolution typically involves much more than simply shutting the doors and walking away. A number of issues can arise when dissolving a business, including:
- Shareholder disputes
- Partnership disputes, particularly when one partner wants to keep certain assets or clients
- Investor disputes regarding asset distribution and profits
- Property ownership disputes
- Obligations regarding commercial real estate leases
- Allegations of breach of contract
- Disputes regarding the allocation of debt responsibilities
The above are just a few of the issues involved when dissolving a business. They also highlight the importance of working with a business dissolution lawyer.
Filing with the Secretary of State
Businesses must file certain documents with the Secretary of State when dissolving a business. The type of documents filed depend on the business entity chosen during the formation of the business. Partnerships and LLCs must file forms with the Secretary of State that cancel their registration. Domestic corporations that were originally incorporated must file for dissolution. Foreign corporations that were not originally incorporated inside the state must file documents that surrender their registration with the Secretary of State.
Regardless of whether a business requires a cancellation, dissolution, or surrender, closing a business always raises legal issues. A business dissolution lawyer can help business owners avoid these issues, and resolve them when they arise.
Contact Our Business Dissolution Lawyers Today
Facing business dissolution is often very difficult, even when the business is dissolved voluntarily. At A Business Law Firm, our Spartanburg business dissolution lawyers have the necessary experience to ensure the process goes smoothly and efficiently. Call us today to schedule a consultation and obtain the sound legal advice you need.