Though many Colorado residents who start their own businesses hope that their companies will outlive them, that is not always what happens. Some business owners need or want to dissolve their companies for many reasons, and not all of them point to a lack of success. Some individuals may feel that the time has come to move on from the company, or personal matters may have made it difficult to keep the business running.
If an owner does decide to close up shop, it is important that the correct steps are taken to handle this matter. Just as there were legal matters involved in starting the business, there are legal steps to follow when closing a company. First, it is necessary for corporations or LLCs to dissolve the business entity. This typically means that the owner will need to file Articles of Dissolution with the Secretary of State and follow other state-specific procedures.
Additionally, final financial matters for the company need to be handled. These can include paying outstanding debts, collecting on money owed to the company, and filing the final taxes associated with payroll and sales tax. The company’s final tax return will also need to be filed.
Of course, the process of dissolving a business does not end there. Canceling permits and licenses is necessary as is distributing any assets owed to shareholders. These matters can prove complicated in some instances, so it is wise for Colorado business owners to have the right help when closing their doors for good. Contacting attorneys experienced in this area of business law could help the process go as smoothly as possible.