What is the process for voluntary corporate dissolution?

Voluntary corporate dissolution is the process by which a corporation in California voluntarily ceases its operations and dissolves its corporate status. This type of dissolution is initiated by the shareholders who must vote to dissolve the company and then follow a set of procedures. First, the shareholders must pass a resolution to dissolve the corporation, which includes a plan of dissolution and a statement of assets and liabilities of the corporation. Then, the corporation must pay all its debts and liabilities, including taxes, and dispose of its assets. Next, if requested by the shareholders, the assets of the corporation must be liquidated to pay the expenses of dissolution. If a majority of the shareholders are in favor of dissolution, they must file Articles of Dissolution with the Secretary of State to notify the public of the dissolution and to officially terminate the corporation. Finally, the corporation must also file a Final Tax Return with the Internal Revenue Service and notify known creditors of the dissolution. It is important to note that corporate dissolution in California does not relieve the corporation from any existing tax liabilities. Corporate dissolution only releases the corporation from its obligations to its shareholders and creditors.

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What is the process for voluntary corporate dissolution?

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