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Business Dissolution Lawyer Protecting Your Rights and Minimize Your Liability

Providing the legal advice you need to terminate your business

At Invictus Law, P.C., we help businesses successfully shut down their operations through sale, succession or termination. From our offices in Orange and San Bernardino counties, we serve communities throughout Southern California, including Santa Ana, Orange, Irvine and Riverside. Closing a business involves dealing with state and federal departments, the completion of documents that must be filed, and assessing taxes and other liabilities. We can help you throughout the entire process and ensure compliance, while minimizing your exposure to any risks.

When a business shuts down, you must inform your employees about unemployment insurance benefits. You must also notify the California Board of Equalization.

Helping you close your business

In California, business dissolution methods depend upon your business structure. U.S. corporations can dissolve, and limited liability companies and partnerships can dissolve or cancel. The end goal is termination of business and legal existence.

To do so requires the following steps:

  • Filing delinquent tax returns
  • Filing the current year’s tax return
  • Paying all tax balances
  • Filing the appropriate dissolution or cancellation form with the California Secretary of State within one year of filing your final tax return

Your business may, however, still be liable for tax debts even after dissolution. With our business law experience, we anticipate issues in advance and mitigate them. And when businesses change through mergers and acquisitions, we assist with the deal and in the transition of operations.

Should disputes arise concerning contracts and agreements or other issues, we stand ready to provide business mediation and business litigation services for an efficient and affocrdable resolution.

Helping you sell your business

Selling your business in California involves the state’s Employment Development Department (EDD) in Sacramento. You need to submit specific forms — payroll tax deposit, quarterly contribution return and report of wages — and payment within 10 days of closing your business.

The buyer of your business should ask you for a certificate of release of buyer. The buyer must hold in escrow an amount of money to cover anything you owe to the EDD, up to the purchase price of your business.

Sales of assets involve the Internal Revenue Service. The sale of each asset, either with a gain or loss, affects your taxes. The same holds true for sales of any stock.

If layoffs occur, employees must be notified of their unemployment insurance benefits. Throughout the sale process, we can assist with minimizing your exposure to taxes and other liabilities.

Helping you pass your business on to your heirs

Successfully transitioning your business to the next generation requires careful planning and execution. You may need to consider the following:

  • Business entity structure
  • Stock type
  • Separation of assets
  • Buy-sell agreements
  • Life insurance
  • Debt instruments and security
  • Estate and gift taxes

Your lawyer and tax advisor can help you develop and implement the appropriate strategies and actions for a successful transition.

Contact us to protect your rights and minimize liabilities when you’re closing a business

Invictus Law, P.C., with offices in Santa Ana and Ontario, California, helps business owners dissolve their operations in compliance with state and federal regulations. Learn about your options through a free initial consultation with one of our qualified business lawyers. Call us at (949) 287-5711 or use our online contact form to tell us about your situation and set up your appointment.

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