What Is Wisconsin Dissolution?
If you think it is time for you to cease all the activities of your business, then you should prepare yourself to handle various tasks and responsibilities. In Wisconsin, business entities have to go through the process of dissolution to close formally.
Why Does A Company Dissolve?
Why do companies need to dissolve? – Wisconsin requires business entities to file documents when they start their operations. Likewise, it also requires companies to submit paperwork to formalize their closure. Properly dissolving your business will inform the state that it no longer has the responsibility to file reports and pay taxes.
Who makes the decision to dissolve? – LLC members need to agree to dissolve. Meanwhile, corporations need the board of directors to propose a resolution to dissolve the company. The shareholders will decide on the resolution through votes. There are also cases when the state dissolves a company administratively.
How long does it take to dissolve a business? – Your company will be the only one that can determine the time frame. The way it handles each task and how much time it spends on each step can affect the time frame. Usually, it takes weeks for a business entity to accomplish everything. You also have to give the state 5 days to process your company’s documents.
What Happens If Your Company Does Not Formally Dissolve?
Even if you decide to close your business, your company will still have obligations since it still exists. Thus, it will still have to file reports and pay taxes. The company will also remain vulnerable to claims and penalties.
Steps To Dissolve Your Business
Follow these steps to ensure that you properly and formally dissolve your business in Wisconsin.
1. File Certificate of Cancellation or Dissolution with the state – Wisconsin LLCs have to submit Form 510 Articles of Dissolution, while corporations have to fill out Form 10 Articles of Dissolution – Stock For Profit Corporation. File the form in duplicate with the Division of Corporate and Consumer Services of the Department of Financial Institutions by mail, in person, or commercial delivery. You can download the forms on the website of the department. You may also draft your articles of dissolution if you do not want to use the form.
2. Remove all liabilities and obligations – Your company will continue to exist to wind up the business. You can appoint a member, manager, or officer, or create a team to handle the winding up affairs. During this step, the company needs to liquidate its assets, prosecute or defend lawsuits, settle its business, dispose of or transfer properties, remove or create provisions to pay liabilities, and distribute the remaining assets according to ownership interests.
3. Give notice to any claimants – To help limit your liability and allow the company to distribute assets safely, you can send notice to creditors and claimants. You can send a written notice directly to all known claimants. Check your company’s records to find out how to contact them. You may also publish it in a newspaper. Make sure the notice includes information on where and until when they can send claims.
4. Tax clearance – Wisconsin does not require business entities to obtain tax clearance before dissolving. However, your company should make sure it does not have pending tax obligations. Your company also has to file a Final Return if it is due. To ensure compliance, you can contact the Department of Revenue.
5. Close all bank accounts, credit lines, permits, and licenses – Use the funds of the company to settle its obligations. After the formal dissolution, you can close the accounts and credit lines that are under the name of the company. To further protect your finances and reputation, cancel all business permits and licenses of your company.
How DoMyLLC can assist with streamlining the process
When you decided to close your company, you may have not been aware of the Wisconsin dissolution process you need to go through. If you need help, you can count on our team of experts. They are ready to provide live support to clients. We also offer personalized solutions. Contact us now and find out how we can help your Wisconsin company.
Wisconsin Dissolution FAQs
Is There A Filing Fee To Dissolve The Business?
The filing fee is $20. If your company chooses expedited processing, you will have to pay an additional $25.
Do You Need The Department Of Revenue Clearance Before The Secretary Of State Will Accept Your Dissolution?
No, tax clearance is not a requirement for dissolving a company in Wisconsin.
How Long Does The State Take To Process The Dissolution?
It will take the state approximately 5 business days to finish the processing of your documents. If your company paid for expedited service, then you can expect the processing to finish by the end of the next business day.
When Can Another Business Use Your Company Name?
The name of an LLC will be available for use upon dissolution. Your company can choose the date it will take effect. However, it should not be more than 90 days after you submit the document. Corporations can either terminate the right to the name on the date the articles of dissolution take effect or keep it safe for 120 days. All business entities that the state has administratively dissolved lose their rights to the exclusive use of the name upon dissolution.