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How do you dissolve a business entity?

No matter what size your California business is, you may reach a point when it is time to end its legal status and move on. There are specific steps you need to follow and forms you must file to dissolve your business entity. Following the state's instructions carefully may help you complete the process quickly and avoid involvement with fraudulent organizations disguised as providers of legal assistance.

You may find information about terminating your business entity along with links to the proper forms on the California Secretary of State's website. According to the SOS, the legal form and fee requirements depend on the type of business you own. For example, if your business is a limited liability partnership, you must file a Notice of Change in Status and submit a fee of $30. Dissolving a California stock corporation usually requires both a Certificate of Election to Wind Up and Dissolve and a Certificate of Dissolution. These forms do not require filing fees.

When you are in the process of dissolving your business, you may receive a letter from a private company offering to complete the dissolution process for you if you fill out a simple form and pay a service fee. The Secretary of State says that this type of letter is a fraudulent solicitation. This fraudulent "business termination service" does not meet the state's requirements for dissolving a business entity. If you receive such a letter, you may report it and make an official complaint to the California Attorney General's office.

This information on dissolving a business entity is intended for educational purposes, and it should not be interpreted as legal advice.

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