When you first hear the term “dissolving a business” it’s all too easy to give it a negative connotation. After all, by dissolving a business you are formally closing the business with the state and officially not doing business there anymore – and the reason for which will vary depending on the circumstance. But forming a business dissolution for an inactive company doesn’t mean that you can never start up another business after or for that matter, reinstate said business again after dissolution.
1) By not filing a dissolution, you’re still considered to be in business.
LLCs and corporations that aren’t formally terminated and haven’t filed Articles of Dissolution are still considered to be active entities within the Secretary of State so technically, your business is still in business. That means it’s legally obligated to file annual reports, pay state fees and pay for its taxes. So if your business is inactive and doesn’t opt to file a dissolution, it’s still considered to be in existence and will be treated as such when it comes to paying for taxes.
2) Save money on annual fees and taxes.
The sooner you dissolve a business, the better, because filing a dissolution helps you to save money on annual fees and taxes. Additionally, you’ll be able to avoid paying unnecessary taxes and annual state fees and be able to prevent late fees and potential penalties to your business in 2014 too. Think of the end of the year as a good place to help tie up loose ends for your business and try to get it done before 2013 ends!
3) You don’t have to go it alone.
If you feel confused about the process, you don’t have to do it solo. Online filing companies work right along with you to help prepare your Articles of Dissolution for review and will submit it to the appropriate state agency in any of the 50 states.