A business owner may decide to dissolve the business for a variety of reasons, ranging from the business not being profitable to wanting to retire and not being able to sell the business or have a family member take over the business.

Dissolution of a business operating as a limited liability company or corporation will usually include filing articles of dissolution with the secretary of state’s office.

A business owner wanting to dissolve a company may want to wind up the business’s affairs, terminate its tax reporting obligations and the payment of annual registration fees, and liquidate any remaining assets.

But a business owner should understand the implications of these actions and the business’s obligations to secured and unsecured creditors, employees, and state and federal tax authorities.

In Florida, when a business owner decides to dissolve a limited liability company (LLC) or corporation, they must follow the procedures outlined in the Florida Statutes. This process typically involves filing articles of dissolution with the Florida Department of State's Division of Corporations. Prior to dissolution, the business must settle its debts, obligations, and handle the distribution of any remaining assets. The business owner must also address any outstanding obligations to secured and unsecured creditors, ensure that employees are paid any owed wages, and comply with state and federal tax authorities by filing final tax returns and paying any due taxes. Dissolution terminates the business's obligation to pay annual registration fees and file periodic reports. It is important for the business owner to understand the legal and financial implications of dissolving a business, and they may benefit from consulting with an attorney to navigate the process and ensure compliance with all legal requirements.