Business Dissolution Guides & Resources

Corporate liquidation is the process of converting a corporation’s assets into cash, paying off its debts, and distributing whatever remains to shareholders. It is one piece of a larger shutdown sequence that also includes winding up operations and formally dissolving the entity with the state. If you are closing a corporation, liquidation is where the […]

If your corporation is dissolving or liquidating, the IRS wants to know about it. Form 966 is the federal tax form that notifies the IRS your corporation has adopted a plan of dissolution or liquidation. Filing it is required by law under Internal Revenue Code Section 6043(a), and missing the deadline can trigger penalties. This […]

When you decide to close your business, the first practical question is: do I handle this myself, hire a lawyer, or pay a dissolution service to do it for me? The answer determines whether you spend $500 or $25,000 — and whether the process takes weeks or months.

Each path has tradeoffs, and none of them […]

Telling your investors that you’re shutting down your startup is one of the hardest conversations you’ll ever have as a founder. You raised money on a promise — a vision of what your company could become — and now you have to tell the people who believed in that vision that it isn’t going to […]

If you incorporated your startup in Delaware and it is time to wind things down, you need a clear process for dissolving a Delaware C-Corp. Delaware makes incorporation famously easy. Dissolution is another story: it involves franchise tax catch-up, state filings, IRS deadlines, and withdrawal paperwork in every state where you did business.

This guide walks […]

Most startups that shut down raised money before they raised revenue. If your company took investment through SAFEs or convertible notes — and you are now winding things down — you are probably staring at those agreements wondering what you actually owe, to whom, and in what order.

You are not alone. The majority of venture-backed […]

Closing a business costs between $0 and $10,000+, depending on your entity type, state, and complexity. A sole proprietor closing a simple freelance business might spend $50 to $500. An LLC owner should budget $500 to $2,000. A corporation or venture-backed startup can expect $2,000 to $25,000 or more.

Most business owners underestimate what they will […]

Closing a business requires up to 93 steps across four phases: decision and planning, legal filings, financial and tax, and operations wrap-up. Miss a step and you could face penalties, lingering tax liability, or even personal exposure for debts you thought were behind you.

This checklist covers more than 90 individual steps across every entity type. […]

If you don’t dissolve your LLC, your state will keep charging you annual fees, franchise taxes, and filing penalties — even if the business has zero revenue and zero activity. An undissolved LLC in California, for example, owes $800 per year to the Franchise Tax Board regardless of whether it earns a dime.

This is one […]