Business Dissolution in Utah
It is a hard decision to make, but there are times when the right decision for a business is to dissolve it before it becomes a financial disaster. If you have had to make this decision, the team at Howard Lewis & Petersen consists of leading business lawyers in Utah that can assist you with this process.
What is Business Dissolution?
You cannot simply shut your doors one day with your Utah company; instead, you must go through the proper channels to avoid any unwanted consequences. With the help of a business lawyer, you can ensure you go through the right channels and avoid any fines or fees by not completing this process correctly.
Steps for Business Dissolution
Once you have decided to tack the dissolution of a business, you must complete the steps below.
- Review your Articles of Incorporation and notify any creditors in your business
- File the Certificate of Dissolution with Utah’s Secretary of State office.
- File the Form 1065 with the IRS
- Cancel your business license
1. Review Your Articles of Incorporation and Notify Creditors
Before you can dissolve the business, you must go through the steps you have outlined legally in the original Articles of Incorporation and make sure you went through the approved steps.
During this step, you need to reach out to any creditors you have and give them notice that you are closing your business. You will need to collect debt balances at that time and have them cancel any business credit. You also need to begin paying your debts right away.
2. File the Certificate of Dissolution
Utah’s Secretary of State Office will need a Certificate of Dissolution form where you are formally ending your business within the state. Be prepared to file a fee with that documentation. If you need it expedited, there is an additional cost with that.
Your business lawyers can help you determine the appropriate fees and complete this documentation.
3. File Form 1065
The IRS will also need to be notified about your business being dissolved. With Form 1065, you have up to three months before closing to file this document. It lets them know exactly when your business stopped and when they can properly calculate taxes for your previous and partial years.
4. Cancel Your Business License
Once you have completed the process and filed the appropriate documentation, you need to cancel your business license with the state of Utah. You will need to provide the state’s updated contact information if they need to reach you further.
How Can a Business Lawyer Help?
When you decide to take on business lawyers in Utah, you get a number of benefits.
- Efficiently filed documentation
- Timing is much quicker than on your own
A business lawyer can help you get the appropriate business dissolution documents together and review them to ensure they are completed correctly. If these documents are not completed correctly, you could be set back in the process and refile.
Also, business lawyers allow you to complete these processes quicker and have them done faster than if you attempt them on your own. Many times those new to the dissolution of a business find themselves set back and having it take longer than it really should.
Contact Our Provo Lawyers Today!
If you are considering a dissolution of a business or need help with business dissolution documents, contact our Provo lawyers at Howard Lewis & Petersen today. We will help guide you through this process so that you file the dissolution appropriately and do not miss important steps that can cost you later. We look forward to speaking with you soon.
