How Long Does It Take to Dissolve a Corporation in California?

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Steps to Dissolve a Corporation in California

  1. File a Certificate of Dissolution With the California Secretary of State.
  2. Board Meeting, Motion, and Vote.
  3. Advise Federal and State Tax Agencies of the Corporation Dissolution.
  4. Close Accounts, Credit Lines, and Licenses.

The California Secretary of State’s office will probably take around 3-4 weeks to process your dissolution. To comply with state law and officially approve the dissolution, you need to file an Annual Statement of Information as a final measure.

If you don’t properly dissolve your corporation or LLC, you’ll lose the right to do business in California. You’ll also be charged a $250 penalty and continue to owe the annual California Franchise Tax until you file to dissolve. To dissolve formally, California requires entities to undergo tasks like paying taxes and canceling licenses.

Process to Dissolve a Corporation in California

  • Shareholders vote to dissolve the corporation.
  • At least 50% of the voting power must vote for dissolution.
  • File the dissolution paperwork with the Secretary of State.
  • Fulfill tax obligations.
  • Cancel licenses and close accounts.

Specific procedures apply to dissolve an LLC in California, depending on the situation. But the paperwork itself is straightforward and usually processed in less than eight weeks.

You can dissolve an LLC in California at any time by making a filing with the Secretary of State. If the vote to dissolve was by all members, you only need to file a Certificate of Cancellation.

Steps to Dissolve a Corporation at Secretary of State in California

To initiate dissolution of a corporation with the California Secretary of State, complete and file a certificate of election to wind up and dissolve and a certificate of dissolution. If all shareholders voted to dissolve, only file the certificate of dissolution.

Search the Secretary of State website to find information on any corporation or business entity in California or another state. Contact clients to get corporation numbers or contact the California Secretary of State.

The certificate of dissolution notifies the Secretary of State you are terminating and dissolving your California corporation. However, consult a lawyer or tax expert before starting dissolution.

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