Wichita Business Dissolution Lawyers
Dissolving and winding up a business can be complicated and needs to be done right to protect the company’s owners from liability. Dissolving a business can also be either civil or contentious.
Co-owners can generally dissolve a business civilly when they have prepared formation documents clearly defining each owner’s rights and responsibilities and how to wrap up the company.
Even if a business wrap-up is civil, it can be tricky. And the complications are magnified if the dissolution is contentious, often requiring court involvement. Call Davis Business Law’s Wichita business dissolution lawyers today at (316) 252-2291 for a free consultation on how we can help you wrap up and dissolve your business.
Dissolving A Business
Assuming that the business dissolution is civil, owners must take several steps to dissolve a Kansas company. The process focuses on liquidating assets, paying creditors, distributing the remainder to owners, and notifying government entities.
The first step in dissolving a business is to prepare a resolution, which the members sign, agreeing to dissolution and outlining the steps. The steps should be the same as described in the operating agreement. Our Wichita attorneys are happy to help with this resolution.
The next step is to cease operations and liquidate or divide assets. Stopping operations stops the revenue flow, so your business can make a concrete asset calculation. The company should pay all creditors if there is enough cash. The owners can then decide whether to liquidate physical assets or divide the property.
If the business does not have enough money to pay creditors, it must liquidate assets to get enough. If it cannot pay its creditors with all available funds, please call one of our Kansas business attorneys for help to avoid personal liability.
After the business has paid its creditors, it can distribute the remaining assets according to how the owners agreed in the operating agreement. However, sometimes the company has no operating agreement, and the owners disagree about how to distribute assets. In that case, we recommend consulting with an attorney to discuss your options.
For a Kansas Limited Liability Company, your company needs to complete and file Articles of Dissolution with the Kansas Secretary of State. Your company can continue its winding down even after filing the Articles of Dissolution. Your company must also notify the IRS, the Kansas Department of Revenue, and the Unemployment Division. Davis Business Law’s attorneys can help guide you through that process.
Business Separations Can Be Civil or Contentious
A business dissolution has to follow a similar process, whether civil or contentious. However, if the dissolution is contentious, the owners may go to court to dissolve the company and seek what they are entitled to upon the company winding up.
For a Limited Liability Company, if the owners cannot unanimously agree to dissolve the company, Kansas law allows an owner to apply to a district court for dissolution in some circumstances. The court may then set terms and decree dissolution of a limited liability company.
Kansas’s limited liability statutes govern how a Limited Liability Company winds up if there is no operating agreement. Other Kansas statutes also govern the dissolution of different types of business entities. If you are involved in a contentious business dissolution, Davis Business Law’s Wichita attorneys want to help you get everything you deserve in the dissolution.
Common Reasons for Business Dissolution
Kansas businesses dissolve for many reasons. Among the most common reasons are:
- Owners do not want to continue, usually prompted by an event such as their commercial lease ending.
- Lack of adequate cash flow, not planning for growth, or increased costs.
- Wanting to roll assets into a new business, perhaps to rebrand.
- Owner disagreements.
Protecting Your Interests
Dissolving and winding up a business can take time and effort. We have explained the typical steps for a Limited Liability Company. If you have a corporation, the steps can be more complicated. If the business does not wind up correctly, the owners could be individually liable for its debts.
Further, suppose your company is dissolving because the owners disagree so much they cannot even work together. In that case, you will want to hire an attorney quickly, lead the dissolution, and take the driver’s seat for how the court should structure the proposed wind-up.
Contact an Experienced Business Separation Attorney
Our experienced business attorneys at Davis Business Law work hard to help all our clients succeed. But, some businesses inevitably still dissolve. Whether it is a contentious or a civil dissolution, we find that dissolving the company can provide our clients great relief. It can give the owners a new beginning and more freedom or help them avoid toxic relationships with other owners.
If you need help dissolving your business, our Wichita attorneys want to guide you through the steps. If the dissolution is contention, our dissolution attorneys are experienced litigators who can fight for your rights in court. Call Davis Business Law’s Wichita business dissolution attorneys today at (316) 252-2291, or contact us here.
Call us at (316) 252-2291 or complete the form below. Your form will be directly emailed to us for a quick reply, typically within 1 business day often within hours the same day. All information is confidential.
Meet Our Wichita Business Lawyers
John Sill, Esq.
Derek I. Grimes, Esq.
Jared Marsh, Esq.
151 S Whittier St
Wichita, KS 67207
Davis Business Law
Wichita, KS 67207