So, why should you bother officially dissolving your business when you shut down operation? For starters, it allows you to formally close your business with the state it was incorporated in. Perhaps more importantly, it helps you avoid unnecessary taxes and fees. Without a formal termination of a corporation or LLC, you could still be charged fees associated with the business. If you don’t dissolve, you’ll still required to file annual reports and to pay state fees and taxes, even if you’re not doing any business.
Additionally, dissolving your business can help prevent fraud. Any business can have its identity stolen just as any person can. Criminals can buy goods and property and enter into legal agreements using the name of your business. The victims of this fraud can you personally as the owner of the business and your business can be named as part of a lawsuit as long as it exists. Dissolving the business eliminates these issues.
If you need your business dissolved in an efficient and effective manner, contact the professionals at Traders Accounting.