Assisting Texas Business Owners With Dissolution Issues
Businesses in Texas close their doors for a variety of reasons. Some lose ground to the changing business environment. Some partnerships go their separate ways. Sometimes the owner retires. Whatever the reason, it is important to know that properly dissolving a business in Texas can be just as important as how it was set up.
We are the business and corporate lawyers of Wright & Greenhill, P.C., in Austin, Texas. Our attorneys have been helping business owners throughout Central Texas avoid legal pitfalls for more than 30 years. If you are considering closing shop or dissolving your partnership with other investors, don’t just walk away without taking care of the necessary legal details.
Few Things In Business Come Easy. Closing Up Shop Is No Different.
You can’t just hang a “Closed” sign on the door; there are several legal and financial matters to consider, including taxes, commitments to employees, sales agreements with customers and supply contracts with vendors.
Some of the business dissolution issues we help our clients with include:
- Business articles for closing your business: Depending upon the entity formation you operated under, there may be specific provisions of your shareholder or operating agreement that require attending to. All investing partners have a legal right to be notified. If your business has been operating for many years, some of the provisions may need to be brought up to date with your partners before you can start the process of dissolution.
- Officially file with the state: Some business entities are required to file with the state of Texas before stopping operations. If employees will be laid off, there may be some reporting requirements to the Department of Labor, as well.
- IRS, state and municipal tax authorities: You will still be liable for any corporate taxes the business may owe to federal, state and local authorities.
- Cancelation of business licenses: If you operated your business under a licensure agreement or permit granted by state or local authorities, the licenses and permits must be officially canceled.
- Resolve matters with creditors and contract partners: All debtors and creditors that will be affected by closing your business have a legal right to resolve final contractual arrangements over money or services owed. Any outstanding creditor claims must also be settled as part of the dissolution process. Likewise, any money owed to the business should be collected and counted among final asset holdings.
- Sell business assets: Whether your company has business equipment to sell or a list of active customers, you will probably need to liquidate some assets to pay off debt or final dividends to shareholders affected by the closure.