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 Kansas, when a business owner decides to dissolve a limited liability company (LLC) or corporation, they must file Articles of Dissolution with the Kansas Secretary of State. This is a formal process that legally ends the existence of the business. The dissolution process includes winding up the business affairs, which involves settling debts with creditors, distributing any remaining assets to the owners, and terminating the business's tax reporting obligations. It is important for the business owner to follow the proper procedures to ensure all outstanding obligations are met, including those to secured and unsecured creditors, employees, and tax authorities. Failure to properly dissolve a business can result in continued liability for business debts and obligations. An attorney can provide guidance on the dissolution process to ensure compliance with state and federal laws, including the Kansas Revised Limited Liability Company Act or the Kansas General Corporation Code, as applicable.