Michigan Plan of Liquidation and Dissolution of a Corporation

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Multi-State
Control #:
US-0076BG
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Word; 
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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.

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FAQ

How long does it take the state to process the filing? Michigan Certificates of Dissolution are processed by LARA in 3-5 days. If you need your documents processed more quickly, fill out the Expedited Service Request form for each document. It usually takes about 6 weeks to get a Tax Clearance Certificate.

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.

Final Guidance on Dissolving Your Califonia Corporation The process to dissolve your corporation in California is relatively straightforward. However, if you qualify for one of the special dissolution procedures, you might need additional help navigating the process.

There are 6 major steps with voluntary dissolution: (1) the board approves a plan of dissolution and proposes dissolution the shareholders; (2) the board notifies and proposes to the shareholders the plan of dissolution and requests a shareholder vote on the plan and the dissolution; (3) the corporation obtains a ...

A domestic corporation that wants to dissolve in Michigan will need a tax clearance certificate after filing for dissolution. Within 60 days after submitting the certificate of dissolution to LARA, the business must request a tax clearance certificate from the Michigan Department of Treasury, Tax Clearance Division.

A plan of dissolution is a written description of how an entity intends to dissolve, or officially and formally close the business. A plan of dissolution will include a description of how any remaining assets and liabilities will be distributed.

450.1801 Methods of dissolution. 801. (1) A corporation may be dissolved in any of the following ways: (a) Automatically by expiration of a period of duration to which the corporation is limited by its articles of incorporation. (b) By action of the incorporators or directors under section 803.

Steps to dissolving a corporation or obtaining a corporate dissolution 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.

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Michigan Plan of Liquidation and Dissolution of a Corporation