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 Wisconsin, when a business owner decides to dissolve a limited liability company (LLC) or corporation, they must file articles of dissolution with the Wisconsin Department of Financial Institutions. This is a formal process that legally ends the existence of the business. Prior to dissolution, the business owner must settle the company's affairs, which includes notifying creditors, settling debts, distributing any remaining assets to the owners, and addressing any claims against the company. The business must also terminate its tax reporting obligations by filing final tax returns and paying any outstanding taxes. It is important for the business owner to comply with both state and federal tax laws during this process. Additionally, the business owner must ensure that all obligations to employees are met, including final paychecks and benefits. Failure to properly dissolve a business can lead to ongoing liabilities and legal issues. An attorney can provide guidance on the dissolution process to ensure all legal requirements are met and to minimize potential risks.