An Illinois company could have a variety of reasons for shutting its doors. Even so, simply closing the doors is not enough to cease operations. Instead, a formal dissolution process must occur in order for the business to be considered legally closed.
All the owners and members of private companies need to agree to the dissolution. Publicly held companies must obtain the agreement of shareholders after creating a resolution to dissolve. At the very least, a company needs to file articles of dissolution with the Illinois Secretary of State or whatever state in which the original organizational documents were filed.
Thereafter, numerous other actions must be taken in order to shut down the company. All of the company’s assets should be liquidated, unless they serve as security for a loan. If that is the case, those assets can either be surrendered, or sold after the loan is paid off.
All of the company’s liabilities also require satisfaction in some way. All relevant tax forms need filing and all applicable taxes need paying. Any money left over after completing these tasks may be distributed. Finally, all interested parties require notification of the business’s dissolution, which includes customers, owners, shareholders, creditors and more.
If a company needs to close its doors, the first step may very well be to contact an attorney with experience in this area. Missing any portion of the dissolution process could potentially put individual owners, members or directors at risk of personal liability. Deciding to stop operating a business is often a difficult and, in some cases, heart wrenching choice. Making sure it is done right could help alleviate some of the stress, tension and frustration that accompanies the process.