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Dave Kennett
Dave Kennett, Attorney
Category: Business Law
Satisfied Customers: 27689
Experience:  25 years practicing law
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If a company goes out of business and the business is still

Customer Question

If a company goes out of business and the business is still owed money what happens to the money when it comes in?
Submitted: 7 years ago.
Category: Business Law
Expert:  Dave Kennett replied 7 years ago.

-Could you explain your situation a little more?
Was this a corporation or a proprietorship?

 

Customer: replied 7 years ago.
We are a plumbing & heating company. The economy has left us without advanced contracts and want to disolve the business before we may be forced to file bankruptcy. We are still owed money from some of the contractors for completed jobs, If we dissolve the business, close out bank accounts, etc. what happens to the money we are still owed?
Expert:  Dave Kennett replied 7 years ago.
-Could you explain your situation a little more?
I need to know if you are a corporation or a proprietorship?
Customer: replied 7 years ago.
We are an LLC
Expert:  Dave Kennett replied 7 years ago.

DearCustomer- So long as the corporation is not dissolved then the money can be deposited into the corporate bank account. You can keep the corporation charter even after you stop doing business in order to wrap up all the affairs of the business. Once the charter is surrendered it may be difficult to cash or deposit any checks.

 

Dave Kennett

Customer: replied 7 years ago.
What do you mean by charter?
Expert:  Dave Kennett replied 7 years ago.

If you are an LLC you would have a corporate charter in order to operate as an LLC. If the business was just in your name then you would be able to keep the business account open and deposit the money just as you do now.

 

Dave

Dave Kennett and 4 other Business Law Specialists are ready to help you
Customer: replied 7 years ago.
Thank You. Happy New Year
Expert:  Dave Kennett replied 7 years ago.
You too and thanks for using our service - Dave