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How do I get out of a business that is failing Are there forms

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How do I get out...
How do I get out of a business that is failing? Are there forms that I can fill out to get out of the corporation?
Submitted: 8 years ago.Category: Business Law
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11/5/2009
Business Lawyer: Richard, Attorney replied 8 years ago
Richard
Richard, Attorney
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Experience: 32 years of experience practicing law and a businessman.
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Are you the sole owner of this corporation?
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Customer reply replied 8 years ago
No. There are six owners/partners altogether and it is a C corporation.
Business Lawyer: Richard, Attorney replied 8 years ago

Thanks. First, as you know, your personal assets are safe from the liabilities of this corporation because a corporation is a limited liability entity except to the extent any of you have personally guaranteed the obligations of the corporation. Second, because of the first, if the business is failing, you want to let it go dormant, but do not dissolve it. When you dissolve a corporation, there are certain dissolution and liquidation documents which must be filed, one of which provides that the owners represent they have made adequate provision for the debts and liabilities of the corporation...some commentators are concerned this may expose the owners to personal liability. Third, if you have a buy-sell or the other partners are willing to buy or take your shares, you could simply fill out the stock transfer ledger on the back of your shares. Fourth, otherwise, just simply hold your shares and let the corporation go dormant...you have no further liability.

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Richard
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