New Hampshire Dissolution
Many entrepreneurs start businesses every year. However, there are also a lot of companies that have to close their doors each year. If you are among the latter, you may already have a plan on how to start again. Before doing that, you have to make sure that your company closes properly.
What Is New Hampshire Dissolution?
When a business entity in New Hampshire decides to end its operations for good, it has to follow certain laws that the state has set. Deciding to close the business is not the last step. It is the start. The company must undergo the dissolution process. Generally, dissolution will formalize the company’s decision to cease all activities with the state.
Why Does A Company Dissolve?
Why do companies need to dissolve? – Dissolving a company, whether it is a limited liability company (LLC) or a corporation, allows it to close the business legally and with the acknowledgment of the state. Additionally, it allows a business owner to deal with all the company’s liabilities to prevent problems in the future.
Who makes the decision to dissolve? – LLCs in New Hampshire require the members to vote for a dissolution. Meanwhile, New Hampshire corporations require two levels of approval. First, the board of directors must submit an approved proposal called a resolution to dissolve to the shareholders. Second, the shareholders will hold a meeting to vote on the resolution the board of directors submitted.
How long does it take to dissolve a business? – The time it takes a company to dissolve will depend on how long it takes to settle all its responsibilities. Your company should also give the state 5-8 business days to process the documents once submitted.
What Happens If Your Company Does Not Formally Dissolve?
Failure to comply with the dissolution process comes with consequences. If your company does not dissolve formally, it will still have responsibilities and obligations with the state. Thus, your company will remain liable for all recurring penalties and fees.
Steps To Dissolve Your Business
If you wish to dissolve your business entity in New Hampshire, you should follow the multi-step process in the state.
1. File Articles of Dissolution with the state – New Hampshire LLCs will have to submit a Certificate of Cancellation of New Hampshire Limited Liability. A New Hampshire corporation will use the Articles of Dissolution by the Board of Directors and Shareholders form. However, if your corporation has not conducted business yet or issued shares, you have to file the Articles of Dissolution by Incorporators or Initial Directors. You should submit the signed, dated, and original form to the Department of State by mail or in person. Make sure the form has a signature.
2. Remove all liabilities and obligations – Proceed with the winding up process. Collect the company’s assets, dispose of its properties that you won’t distribute in kind, remove all its liabilities or make provisions on how to do it, and distribute remaining properties according to interests.
3. Give notice to any claimants – Inform all known claimants and creditors where they can send their claims and until when. Clarify that your company will not accept claims after the deadline. You may also publish the notice in a newspaper if you think there may be unknown claimants.
4. Tax clearance – You do not have to obtain a tax clearance for your New Hampshire company. However, you have to ensure that you do not have unpaid taxes. Additionally, corporations that have conducted business have to certify in the dissolution form that they have mailed to the Department of Revenue Administration a copy of the Articles of Dissolution.
5. Close all bank accounts, credit lines, permits, and licenses – Use the company’s funds to settle all obligations. Then, close all business accounts. You should also cancel business permits and licenses to avoid possible issues in the future.
How DoMyLLC can assist with streamlining the process
Dissolving your company requires you to follow and understand multiple steps. If you need guidance as you go through the process, do not hesitate to rely on a professional. We offer personalized solutions and live support from our team. Contact DoMyLLC now to help you formally close your business entity in New Hampshire.
New Hampshire Dissolution FAQs
Is There A Filing Fee To Dissolve The Business?
Business entities in New Hampshire have to pay a $35 filing fee.
Do You Need The Department Of Revenue Clearance Before The Secretary Of State Will Accept Your Dissolution?
No, you do not. New Hampshire does not require companies to get clearance from the Department of Revenue Administration.
How Long Does The State Take To Process The Dissolution?
The Department of State takes approximately five to eight business days to process mailed documents. It processes in-person filings within three to five business days.
When Can Another Business Use Your Company Name?
If you have dissolved voluntarily, your LLC name will be available immediately for another entity to use. The business name of a corporation will not be available for use for 120 days following the dissolution.