Dissolution and Liquidation
Various reasons can lead to the dissolution of a business, such as bankruptcy, retirement, change in the relation of the owners or change in career direction. However, dissolution is not the last act in the life of any partnership, limited partnership, limited liability company or corporation.
The business entities survive to wind up the affairs, pay off creditors and distribute what is left to the owners. Therefore, when a company is no longer conducting business, it is important to follow the legal steps to wind itself up as a legal entity.
A business can dissolve for reasons and according to procedures provided for under the Florida Statues, Florida common law and the company’s governing documents. Unless exceptions apply, a company’s dissolution commences the winding up of the company’s affairs and leads to the company’s ultimate termination.
The business entity must complete transactions that have begun and sell its assets. Once the assets are sold, the proceeds are distributed to the owners according to a plan governed by Florida law, federal law and the company’s organizational documents.