Although sometimes used interchangeably, the terms “dissolution” and “liquidation” are legally different. If a business is in need of a significant restructuring, it may require a full liquidation. A dissolution is an alternative to this process; it entails less paperwork and less money required for closing down the business. However, dissolutions generally do not provide either party with any sense of personal satisfaction or closure.
It would be best if you have the assistance of an attorney to dissolve your business because a legally binding dissolution requires a formal dissolution of the business, an agreement between all parties involved, and the creation of legal documents to formally dissolve the corporation or LLC. Without the help of a New Port Richey business litigation attorney, it can be difficult to completely dissolve your business without any gaps in ownership or intellectual property rights.
Is it essential to hire a lawyer for business dissolution?
Yes, you need a lawyer for business dissolution. Without a lawyer working for you, you will not be able to do certain things that are necessary for the dissolution of your business. A lawyer understands these legal requirements and helps you navigate the process.
What is the role of business lawyers in the Dissolution of Businesses?
A business lawyer in this field is an expert in dealing with all the issues that arise when a business is closing down. A lawyer will be able to make sure that all assets are accounted for, eliminating any disputes between the owners and creditors. In addition, your lawyer will also be helpful in deciding who will get what from your business assets and how the process of closing down your business will be handled.
The American Bar Association (ABA), in its Formal Opinion # 868 Section 7 (4), states that a business attorney is essential for dissolving a corporation franchise. This is because a business lawyer will have the knowledge of the intricacies involved in dissolving your business. The business attorney will also be able to help you with the simple and complex issues related to dissolving your business, including who has legal rights to what property, what each owner will get out of the assets, and how your personal assets will be protected. The lawyer can also help you with such legal procedures as drafting documents, preparing legal opinions, and choosing or hiring an expert witness or accountant.