What Should You Consider When Dissolving a Business in Nevada?

Dissolving your business is a big step, and the most important step after deciding to do it is getting the right Las Vegas, NV business lawyer on your side to ensure that everything is done correctly from start to finish. That way, you can rest easy that there won’t be complications and nothing will come back later to bite you.

What Should You Consider When Dissolving a Business in Las Vegas, NV?

Whether You’re Eligible

To dissolve your business, you have to be in good standing with the Nevada Secretary of State. This is just a way of saying that all of your required filings have to be current. If you have licenses you haven’t renewed or state taxes and fees that haven’t been paid, you need to get these taken care of before you can dissolve. If you’re not in a position to pay all your debts, taxes, and fees, then you may need to consider bankruptcy proceedings.

Fulfill Your Obligations

There are several legal obligations you have before you can officially dissolve your business, so you need to sit down and go over each of these with your lawyer. You’ll need to not only pay taxes but also get clearance from the Nevada Department of Taxation. Then, you’ll also have to cancel any business licenses and permits that you might have and notify all regulatory agencies that you are dissolving. You’ll have to file your final tax returns and close out the tax accounts with the IRS and the state. Then, you notify all your creditors in writing.

Prepare Your Filings With a Business Lawyer

You also need to make sure your filings are thoroughly prepared, and if things aren’t done properly here, there can be delays, debt may pile up, and you may be in for more liability than you expect. Articles of Dissolution have to be filed with the Nevada Secretary of State, and these filings need to include your reason for closing, the date of dissolution, signatures from everyone who may be required, your name and business ID, and an official statement that all debts have been paid or arrangements have been made for paying them.

Think About Unknown Creditors

If it’s possible that you have a debt you’ve overlooked, the law requires you to publish a notice of dissolution in the local newspaper and give creditors 120 days to bring a claim. If this is a possibility for you, be sure that you put some money aside just in case there are unknowns. This is wise not only to pay creditors or in the event someone brings a lawsuit, but also in case you have back taxes or need to make a final payroll.

List Out Stakeholders

Finally, be sure to consider who needs to be notified in addition to government agencies. This would include all business partners, insurance companies, vendors, clients, property managers or landlords, and suppliers.

There’s a lot that goes into closing a business properly, and we can help. Contact the Hutchings Law Group in Las Vegas, NV today.

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