Sjoberg & Tebelius, P.A.
Serving Minnesota & Western Wisconsin

Wrapping Up Operations in a Business Dissolution

Spools2.jpgWhen a small business closes its doors, there are several processes owners should ensure they follow to wind up operations. For some, there will be few formalities and little paperwork. Others have legal obligations under state and federal law. In either case, the following basic steps provide a framework for any business owner looking to move on.

Notifying the secretary of state

In some cases, owners of a closely held business can lay out their own dissolution process in their operating agreement. Sole proprietorships and general partnerships can close shop without any formal announcement of dissolution.

However, that is not always the case. Minnesota LLCs, for example, must follow the voluntary dissolution rules from the state's LLC Act. Members of the LLC must call a meeting specifically to take a vote on dissolution. Then, the business must file dissolution documents with the state.

Important cancellations

Any small or closely held business must also formally cancel permits and licenses relating to the company. Also, it is essential to cancel any business or trade name registrations to limit liability and/or tax obligations.

Wrapping up with employees

Under the Worker Adjustment and Retraining Notification Act, companies with more than 100 employees must notify their staff at least 60 days before dissolving the business. Business owners should also plan to issue final paychecks and to pay out unused time off, if required by their internal policies.

Covering all the bases

Whether someone wishes to close their business as the result of financial challenges or from a desire to move on to bigger and better things, dissolution is no time to skip the details. A business formation and dissolution attorney can help ensure all loose ends are tied up.

No Comments

Leave a comment
Comment Information
Client Testimonials

Client Testimonials

  1. “Thank you for providing personalized professional services to us during a time of grief and loss when family relationships were not the best. With an attorney on board to help manage legal matters, everyone had confidence that the best was being done. ”

    Read More…
  2. “Our estate plan was handled well. We never felt rushed and all details were fully explained. Sam is very professional, easy to talk to and experienced in all aspects of estate planning. He gave examples and explored alternatives for us to consider. Well done and thanks.”

    Read More…
  3. “I was given the name of the law firm by a family friend after helplessly pilfering through endless names on websites. I am grateful I called. I was connected with Dave Meier immediately and from the go, was treated with dignity, care and respect. Every visit to the firm was pleasant and professional. ”

    Read More…
  4. “We were highly impressed upon the level and capability of Sjoberg & Tebelius. They gently showed us that there was much more to achieving the Will in the correct format that will protect our children than the quick attempts we had made on our own. Great people to work with - achieving our desired results!”

    Read More…

Over 30-years of experience Serving Minnesota & Western Wisconsin

Sjoberg & Tebelius, P.A.

2145 Woodlane Drive
Suite 101
Woodbury, MN 55125

Toll Free: 888-892-7044
Phone: 651-315-8856
Fax: 651-738-0020
Map & Directions