Forward-thinking and effective business planning is vital, but there are all sorts of reasons why liquidation could become an issue and these are not always things that directors can prevent or even plan for. Actually, those who manage their business properly and have proper business practices in place do not need to know a great deal about liquidation.The main thing they should be aware of is that if liquidation becomes an option then expert advice is vital.
“So long as directors know to come to us for assistance as soon as they face insolvency or liquidation that is the main thing.” In fact, directors whose companies go into liquidation do not play much of a role in the process.
As soon as the liquidation process begins the directors are relieved of their obligations, leaving them free to move on to other companies or business interests.
Liquidation (likvidation) is the process of winding up a limited company by selling its assets in order to pay its debts.
Possible surplus will be divided among its shareholders.
Although most states use a similar winding up process, limit the LLCs liability for lawsuits and government fees by first contacting your state's secretary of state to check for any special or state-specific requirements.
Make a formal decision to liquidate or dissolve an LLC by taking a vote to dissolve according to procedures outlined in the LLC articles of organization or in an operating agreement.
So long as they recognise the importance of seeking assistance, directors should not have to worry about the intricacies of liquidation.
“We have experts who know the process inside-out, so directors do not have to worry about the rules and regulations,” explains Lyndon Ogden, Director at Company Liquidation Services.
Contact the secretary of state's office for your state and ask for the necessary termination forms.