Corporate Dissolution

Sometimes, the best business decision you can make is knowing when to call it. Whether you're winding down an LLC or dissolving a corporation, the process can be complex and a bit stressful. That’s where we come in. No judgment, just help. Let’s wrap it up cleanly so you can move on to your next great idea.

What exactly is a corporate dissolution?

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Corporate dissolution is the formal legal process of ending a company’s existence under California law. Once dissolved, a corporation or LLC stops doing business, winds up remaining affairs, pays off debts, distributes remaining assets, and files final paperwork with the state and taxing authorities.


A proper dissolution protects owners from ongoing tax obligations, penalties, and future legal exposure.

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When is it time?

The reasons to dissolve (sometimes called Cancellation or Winding Up) vary. Strategic pivots, market shifts, or simply the end of a chapter, dissolution happens; and that’s okay.

Usually, our clients elect to dissolve their corporate entity when:

  • The business is no longer active or profitable

  • Owners no longer want to continue operations

  • There is a deadlock among owners or directors

  • The company has fulfilled its original business purpose

  • A sale of assets has occurred and the entity is no longer needed

  • The entity was never used and owners want to close it for compliance reasons

  • Maintaining the business is more costly than beneficial (e.g., minimum franchise tax)

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What’s involved?

Dissolution involves more than just closing the doors. It’s a legal unwind, and it deserves clarity, care, and a little compassion. We’re here to help you navigate the paperwork, the deadlines, and the stress so you can focus on what’s next, not what’s left behind.

4) Timeline & Expectations

  • How long it takes

  • What can delay the process

  • What the client must provide

  • What you handle


Sets expectations and reduces tire-kicking

5) Pricing / Fee Transparency (Even if Generalized)

If exact pricing isn’t listed:

  • Ranges or starting price

  • What’s included vs. not included

Know what you’re getting into.

6) Benefits of Dissolving Properly

  • Avoid franchise tax

  • Cut off future liability

  • Stop reporting obligations

  • Clean wind-up

7) DIY Risks / Why Professional Help Matters

  • Wrong forms filed → still liable for taxes

  • Failure to notify creditors

  • Improper asset distribution creates legal exposure

  • State suspension ≠ dissolution

Clarifies value.

8) What Your Firm Does (Service Summary)

Examples:

  • Prepare resolutions/election

  • File dissolution paperwork

  • Coordinate with CPA

  • Provide checklist

  • Handle creditor notices

Explain how hands-off it can be.