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 South Carolina, when a business owner decides to dissolve a limited liability company (LLC) or corporation, they must follow the procedures outlined in state law. This typically involves filing articles of dissolution with the South Carolina Secretary of State's office. The process of winding up the business includes settling debts, liquidating assets, and addressing any obligations to creditors, employees, and tax authorities. Secured creditors have priority over unsecured creditors in the event of asset distribution. The business owner must also ensure that all tax reporting obligations are met, including filing final tax returns and paying any outstanding taxes. Additionally, the business owner must terminate the business's annual registration fees. It is important for the business owner to understand the legal and financial implications of dissolving a business and to comply with all relevant state and federal laws to avoid potential liabilities. An attorney can provide guidance on the specific steps and legal requirements involved in dissolving a business in South Carolina.