To dissolve your financial interest in a corporation, you need to transfer all of your shares of corporate stock to another person, which may be done through selling your shares. This will transfer all of your rights and liabilities attached to your financial interest in the corporation. You do not need to file any papers with the state where the corporation is incorporated, nor do you need to remove yourself in any other way from the corporation.
How Can I Dissolve the Entire Corporation?
There are several ways in which an entire corporation can be dissolved. These include:
- A proposal by the board of directors to dissolve that is subsequently approved by shareholders
- Shareholders electing to dissolve the board in light of a deadlock among the directors or misconduct by executives
- A judicial decree, meaning that a cour has determined that the corporation must be dissolved
- Creditors liquidating all corporate assets to pay the debts owed to them
What Do I Have to Do Once a Corporation Has Been Dissolved?
A filing by the corporation is required in every state to finalize a dissolution of a corporation. The corporate assets are then sold off. Any remaining creditors must be paid, and any remaining assets must then be distributed to shareholders.
Do I Need an Attorney to Help Dissolve My Corporation?
Only a short discussion with your business attorney is needed if you only want to pull out your interests from the corporation, as you only need to sell all of your shares to accomplish that. However, if you want to dissolve the entire corporation, then you should definitely speak with an attorney who has experience with all the required legal steps.