Virginia Business Dissolution Lawyer
All businesses that come to an end must follow the Commonwealth’s procedures for dissolution. Regardless of whether a business is a corporation, partnership, sole proprietorship, limited liability company, or a variant thereof, dissolution is multi-step process. Not only must companies file the proper paperwork with the state, but they must also pay off creditors and fulfill their contractual obligations.
A Virginia business dissolution lawyer could help you to take the necessary steps to properly dissolve your entity. From forming a plan, to filing proper paperwork and distributing profit, a seasoned business litigation attorney could guide you through the process of dissolving your company.
Dissolving a Business in Accordance with State Guidelines
The Virginia State Corporation Commission (SCC) oversees and regulates the formation and dissolution of all companies and businesses in the Commonwealth. This agency has control over every corporation in the state. Just as companies must submit articles of incorporation with the Commission to start doing business, they must file certain paperwork before they can legally stop doing business.
Filing Business Dissolution Paperwork
Once a determination to dissolve the company is made, the business must complete and submit Form SCC743 with the Commission. Those completing this form must provide information about the company, when the shareholders voted for dissolution, and details about dissolution approval.
Alternatively, a company may dissolve by completing and submitting articles of dissolution. According to the Code of Virginia §13.1-743, these articles must include information concerning:
- The name of the corporation
- The date that the board authorized dissolution, and
- A statement of unanimous shareholder approval or proof of shareholder majority approval
Similar processes apply to partnerships, limited liability companies (LLCs), and other forms of business entities. A local attorney could help owners prepare the paperwork necessary to legally dissolve their company.
Process of Business Dissolution in Virginia
Companies filing for dissolution should take additional steps to finalize their accounts. Paying off debts, such as mortgage payments, bank loans, outstanding invoices, and even payroll should be a primary concern. Settling these accounts is essential to winding down business and preventing future lawsuits. These debts should be paid before the proprietors of the business remove funds from the business for dissolution
Another key step is fulfilling remaining obligations. It is especially important for businesses that provide services to complete outstanding contracts or assign them to other parties.
Only after all debts and obligations are paid can a company distribute any remaining profits. The articles of incorporation generally outline the proper distribution of these profits. A lawyer in the area could ensure dissolving businesses adhere to proper debt payment and profit plans.
Retain a Virginia Business Dissolution Attorney
Ending a business is never a simple task. Those in control of a company must ensure that all parties receive the money that is owed to them. Only once this is complete can owners receive the profits of their remaining assets.
A Virginia business dissolution lawyer could guide you through this legal process. Experienced attorneys could help ensure your dissolution is in compliance with Commonwealth laws help you avoid future legal burdens. Contact our office today to schedule an appointment.
