Most often, it is a legal process that means a company’s assets are sold and the owner is left without any further liability. The dissolution of a business also includes winding up its affairs and distributing remaining assets. You might need the assistance of business attorneys in Spartanburg for various matters related to business dissolution.
The owner of the business might decide to dissolve the company for numerous reasons, such as shutting down a branch or selling off its assets. Many small businesses start with the goal of earning profits, but they may not remain profitable in the long run. In such cases, selling off assets or shutting down loss-making branches is easier than selling your business. There are also other reasons why you might want to dissolve a business.
Here are some common issues involved in business dissolutions in Spartanburg.
Whether it’s a shareholder dispute between two parties or a disagreement among the shareholders, you need to address the matter as soon as possible. For example, suppose that two parties have an agreement with each other regarding the distribution of assets after the dissolution of the company. However, one party refuses to perform its obligations and its share gets stuck with you rather than being distributed among other shareholders. This is where the idea of lawyers comes into the picture. They can help solve these issues and ensure that your rights are protected by all concerned parties.
There are times when a business partner may not be willing to allow others to partake in profits. This is when you need an experienced business dissolution lawyer as an advocate.
For example, suppose that you have formed a partnership in a small business and the other partner refuses to pay the amount due to you. You may want to dissolve the firm if your share cannot be paid. However, this action would be difficult without the assistance of an expert lawyer. The needs of all concerned parties should be taken into account before disbanding the firm.
Allegations of a breach of contract
Business dissolution can also be a result of a breach of contract by an individual or a legal entity. For example, suppose that you have been entrusted with the responsibility of selling the property of your business partner. In this case, if you fail to do so and handle things with due carelessness, your actions would be considered a breach of contract, which might lead to business dissolution.