What Is Oklahoma Dissolution?
When companies decide to close, they need to follow a certain process to formalize the decision. This process is known as dissolution. It allows companies to inform the state that they will no longer conduct business activities or have liabilities for tax obligations and reporting requirements anymore.
Why Does A Company Dissolve?
Why do companies need to dissolve? – Oklahoma requires every company to submit paperwork to legally operate in the state. The same applies when it is time to end the operations. Companies have to file paperwork to terminate their Oklahoma business properly.
Who makes the decision to dissolve? – The decision to dissolve an LLC relies on its members. Corporations, on the other hand, need to have an approved resolution from the board of directors and a shareholder vote.
How long does it take to dissolve a business? – The whole process may take weeks. However, it is not guaranteed. The time frame will depend on how fast your company finishes each step. Your company has to start with the resolution and deal with other responsibilities. As for the state, it usually takes a week to process dissolution documents.
What Happens If Your Company Does Not Formally Dissolve?
If your company does not undergo the proper process of dissolving, it will still be state-registered. The state will still consider it an active business. Thus, it will have to continue filing annual filings and pay taxes. Failing to do so could cause your business to be placed in ‘Not Good Standing’ with the state.
Steps To Dissolve Your Business
There are certain steps that a company needs to follow to ensure that it complies with the rules Oklahoma has set.
1. File Articles of Dissolution with the state – To close an LLC in Oklahoma, a company must file a completed Articles of Dissolution of an Oklahoma Limited Liability Company form. An Oklahoma corporation must use the Certificate of Dissolution form. File the proper form with the Secretary of State by mail, fax, or in person.
2. Remove all liabilities and obligations – One of the crucial steps that a closing business has to do is the winding up of the company. Your company can designate one or more members or officers to handle this. The process may include the collection of assets, disposal of properties that your company cannot distribute in kind or make provisions to pay for liabilities according to the priority the law has outlined, and distribution of remaining assets to shareholders or members depending on the rights and interests.
3. Give notice to any claimants – Sending a written notice to creditors may help your company avoid possible problems on the liability and distribution of assets. Inform all known claimants about the company’s dissolution. Make sure they know where and until when they can submit claims. You may also choose to publish a notice in a newspaper to inform other unknown claimants.
4. Tax clearance – Oklahoma does not require companies to secure tax clearance. However, your business entity must make sure it does not have any pending obligations with the Department of Revenue.
5. Close all bank accounts, credit lines, permits, and licenses – Use the funds left in the bank to settle all your company’s liabilities. After that, you can contact the bank to learn the process of closing accounts. Since you will not be able to use the accounts under the name of the company, it will be best to close them. You may also have to cancel other business permits and licenses to protect your reputation and prevent possible issues in the future.
How DoMyLLC can assist with streamlining the process
Dissolving a business can be sad and stressful. You may have a hard time thinking about the paperwork and processes that you need to deal with. If this is the case, you can turn to the professionals. Our team of experts can offer live support and personalized solutions. Contact DoMyLLC now and experience a hassle-free dissolution of your company in Oklahoma.
Oklahoma Dissolution FAQs
Is There A Filing Fee To Dissolve The Business?
The filing fee for the dissolution of a business entity in Oklahoma is $50. You may request for one-day expedited processing for an additional fee of $25.
Do You Need The Department Of Revenue Clearance Before The Secretary Of State Will Accept Your Dissolution?
No, Oklahoma does not require business entities to obtain a tax clearance certificate from the Department of Revenue.
How Long Does The State Take To Process The Dissolution?
The Secretary of State normally takes a week to process dissolution filings. However, you can pay for expedited service to finish the processing on the same day.
When Can Another Business Use Your Company Name?
Another business entity can use your company name a day after the termination or dissolution.