Business Dissolution

Ensure a smooth business dissolution process with The Darvish Firm, APC. Our experienced attorneys guide you through the complexities of voluntary or involuntary dissolution, helping protect your rights and business interests. Get expert legal support for a successful outcome today.

Understanding Business Dissolution Process

What is Business Dissolution?

Business dissolution refers to the process of terminating a business entity’s existence, such as a corporation, partnership, or limited liability company (LLC). Dissolution can occur voluntarily or involuntarily, and it involves winding up the business’s affairs, distributing its assets, and terminating its legal existence.

Voluntary Dissolution

Voluntary dissolution occurs when the owners or shareholders of a business entity decide to dissolve the business. This may happen for various reasons, such as retirement, a change in career goals, or a desire to start a new business venture. The owners must follow the procedures outlined in the entity’s governing documents and state law to dissolve the business properly.

Involuntary Dissolution

Involuntary dissolution happens when the government or a court orders the business to dissolve. This can occur for reasons such as failure to pay taxes, violating laws or regulations, or failing to comply with the entity’s governing documents.

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Steps in the Dissolution Process

The dissolution process typically involves the following steps:

Disagreements Among Shareholders

Dissolution can become complicated if two or more shareholders disagree on how to run the business. In such cases, the best course of action is often to try to resolve the disagreement through negotiation or mediation.

Legal Help for Resolving Disputes

If negotiation or mediation is unsuccessful, the next step is to consult with an attorney who specializes in business law. The attorney can help the parties understand their legal rights and obligations, and work toward finding a solution that is satisfactory to all parties involved.

Court Intervention in Dissolution

If the parties still cannot reach an agreement, one or more shareholders may file a lawsuit to force the dissolution of the partnership. The legal process can be lengthy and expensive, and the court may ultimately decide to dissolve the partnership or order a buyout of one or more shareholders.

Partnership Agreement Provisions

In some cases, the partnership agreement may contain provisions that outline how disagreements over dissolution should be resolved. If this is the case, the parties should follow the procedures outlined in the agreement.

It is essential to seek legal guidance throughout the dissolution process to ensure that all legal requirements are met and that the parties’ rights are protected. Please call the Los Angeles Attorneys at The Darvish Firm, APC to discuss your options and for a no- obligation 15 minute consultation.

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