Kentucky Plan of Liquidation and Dissolution of a Corporation

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Multi-State
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US-0076BG
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Description

Dissolution is the act of bringing to an end. It is the act of rendering a legal proceeding null, or changing its character. Under corporate law, it is the last stage of liquidation. Dissolution is the process by which a company is brought to an end.



Liquidation is the selling of the assets of a business, paying bills and dividing the remainder among shareholders, partners or other investors. A business need not be insolvent to liquidate. Upon liquidation of certain business, such as a bank, a bond may be required to be posted to assure the proper distribution of assets to creditors.

How to fill out Plan Of Liquidation And Dissolution Of A Corporation?

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FAQ

If your Kentucky LLC was administratively dissolved by the Kentucky Secretary of State (SOS), you can reinstate at any time. You just have to complete and submit the Reinstatement Application.

In Kentucky, business entities are required by law to formally dissolve. In order to properly close, a domestic entity must file articles of dissolution, and a foreign entity must file a certificate of withdrawal. These forms are available for download on this website.

Here is the process of how to dissolve a corporation. There are two different types of dissolution depending on the reason for initiating the process: voluntary dissolution and involuntary dissolution.

After dissolution, a corporation is generally expected to pay all its existing debts and then liquidate its remaining assets to its shareholders. This sometimes becomes difficult, however, where there are unknown claims that may exist against the corporation.

Entities that are "inactive" are either in "good standing" or "bad standing." If an entity has "inactive status and bad standing," either the entity did not file an annual report for the year, or the registered agent has resigned and a new agent has not been appointed.

Involuntary/Administrative Dissolution ? The Secretary of State may administratively dissolve a business entity for non-compliance with various Kentucky business laws. An administratively dissolved business may not carry on any business except that necessary to wind up its affairs and liquidate its assets. KRS 14A.

How to Dissolve an LLC in Kentucky in 7 Steps Review Your LLC's Operating Agreement. ... Vote to Dissolve an LLC. ... File Articles of Dissolution. ... Notify Tax Agencies and Pay Remaining Taxes. ... Inform Creditors and Settle Existing Debt. ... Wind Up Other Business Affairs. ... Distribute Remaining Assets.

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.

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Kentucky Plan of Liquidation and Dissolution of a Corporation