Purpose of Certificate of Dissolution
The California Certificate of Dissolution form ends a corporation in California. The purpose of the Certificate of Dissolution form is to wind up a corporation’s affairs before termination.
Steps to Corporate Dissolution
There are five steps to corporate dissolution:
- Hold a board meeting with a motion and vote for voluntary dissolution.
- File a Certificate of Dissolution with the Secretary of State.
LLC Dissolution and Termination
An LLC files a Certificate of Dissolution when dissolving. A Certificate of Cancellation terminates an LLC’s rights and privileges. Dissolution winds up an LLC’s affairs before termination.
Financial Protection and Liability
Securing a certificate of dissolution in California provides financial protection and prevents possible future liability. Before getting this protection, outstanding liabilities should be addressed, except next year’s taxes.