Corporations Dissolution Law and Legal Definition

Dissolution is the termination of a corporation, either

1. voluntarily by resolution, paying debts, distributing assets and filing dissolution documents with the Secretary of State; or

2. by state suspension for not paying corporate taxes or some other action of the government.

There are six primary steps involved when dissolving a company. They are:

    i. Corporate action to approve the dissolution

    ii. Filing articles of dissolution with the state

    iii. Filing all necessary federal, state, and local tax forms

    iv. Statutory notification to creditors

    v. Settling creditors' claims

    vi. Distribution of remaining business assets

    Relevant legal forms include:

    a. For-Profit Corporations Articles of Dissolution

    b. Letter - Dissolution of Corporation

    c. Dissolution of Lien -- Corporation

    d. Dissolution (Dissolve) Package for Corporation