Free preview Declaration of Dissolution of Unit
Free preview
Declaration of Dissolution of Unit
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Dissolution. The first step to closing up shop is receiving shareholder approval to formally close the corporation. The board of directors should adopt a resolution to dissolve the corporation and receive approval for the action.
A stipulation is an agreement between two parties that is submitted to the judge for approval. It eliminates the need to go to court and have a judge decide an issue. A written Stipulation and Order includes the parties' agreement, both of their notarized signatures, and the judge's signature.
You must file Form 966, Corporate Dissolution or Liquidation, if you adopt a resolution or plan to dissolve the corporation or liquidate any of its stock. You must also file your corporation's final income tax return.
Fill out your court forms. Fill out a Response (Form FL-120. Have your forms reviewed. Make at least 2 copies of all your forms. File your forms with the court clerk within 30 days of being served with the Petition. Serve your papers on your spouse or domestic partner. File your Proof of Service.
Joint Petition for Summary Dissolution (Form FL-800 ). You must BOTH sign this form. Any required local court forms. Some courts ask you to fill out local forms when you ask for a summary dissolution. Check your court's website or contact the court to see if you have to fill out any local forms.
You must file Form 966, Corporate Dissolution or Liquidation, if you adopt a resolution or plan to dissolve the corporation or liquidate any of its stock. You must also file your corporation's final income tax return.
Failing to dissolve the corporation allows third parties to continue to sue the corporation as if it is still in operation. A judgment might mean that shareholders use the money received from distributed assets when the corporation closed down to satisfy judgments against the corporation.
Call a Board Meeting. File a Certificate of Dissolution With the Secretary of State. Notify the Internal Revenue Service (IRS) Close Accounts and Credit Lines, Cancel Licenses, Etc.