What Is Wyoming Dissolution?
When a company closes, it needs to formalize it with the state. This process is called dissolution. The process may vary per state. However, all states in the U.S. require business entities to go through it when they close.
Why Does A Company Dissolve?
Why do companies need to dissolve? – Dissolution officially ends the existence of your business entity in Wyoming. The state required your company to register its business through the filing of paperwork. Likewise, your company has to submit paperwork to formalize its closure.
Who makes the decision to dissolve? – Members of a Wyoming LLC will make the decision for the company. Meanwhile, corporations will need the approval of the board of directors and shareholders. The state may also dissolve a company administratively if it deems it necessary.
How long does it take to dissolve a business? – Your company may need to spend weeks to finish the whole process. There is no guaranteed time frame. It will depend on how long it will take your company to finish each step. As for the state, it will need a week to finish processing your company’s documents.
What Happens If Your Company Does Not Formally Dissolve?
You will need to dissolve your business entity in Wyoming. Otherwise, it will continue to exist even if you do not conduct business activities. It will also still be registered with the state. Thus, your company will have obligations, such as filing reports and paying corresponding fees. Additionally, your company remains liable for corporate acts in the past.
Steps To Dissolve Your Business
Make sure you follow each step carefully when closing your company in Wyoming.
1. File Articles or Certificate of Dissolution with the state – To formally dissolve an LLC in Wyoming, a company has to submit Limited Liability Company Articles of Dissolution. Corporations can either file the Profit Corporation Articles of Dissolution by Incorporators or the Initial Directors or Profit Corporation Articles of Dissolution by Shareholders. File the form in duplicate with the Secretary of State by mail or in person.
2. Remove all liabilities and obligations – Your company should proceed with the winding up of its affairs. You can designate a team or one member, manager, or officer to deal with this task. Liquidate all the assets of the company and settle its obligations. If there are remaining assets, distribute them to members or shareholders according to ownership interests.
3. Give notice to any claimants – You can send a written notice to known claimants and creditors. Check your company’s records to find out how to reach them. The notice should include where they can submit claims and the deadline for submission. You can also publish a notice in a newspaper so you can inform possible unknown claimants about the dissolution of your company. For federal tax purposes, check the box in the income tax return that indicates that the document will be your company’s final return.
4. Tax clearance – Wyoming does not require business entities to obtain a tax clearance before the dissolution. However, your company should make sure that it does not have any pending tax obligations.
5. Close all bank accounts, credit lines, permits, and licenses – Use the funds of your company to deal with its liabilities. After the dissolution, contact the bank and find out how you can close the accounts and credit lines that are under the name of your company. You will not be able to use the accounts for other purposes. So, it will be best to close them and avoid possible legal issues. Your company may also have business licenses and permits. Cancel them. This way, you can protect your reputation and prevent possible fiscal obligations.
How DoMyLLC can assist with streamlining the process
Closing a business requires you to deal with a variety of tasks. You should also make sure that you do each step correctly. To save yourself from the stress, you can get help from an expert. We can handle the paperwork for you. We will also ensure that your company complies with the regulations of Wyoming. We also offer personalized solutions and live support from our team of experts. Contact us now and find out how we can assist your Wyoming company.
Wyoming Dissolution FAQs
Is There A Filing Fee To Dissolve The Business?
The filing fee for the dissolution of a business entity in Wyoming is $50.
Do You Need The Department Of Revenue Clearance Before The Secretary Of State Will Accept Your Dissolution?
Clearance is not a requirement when dissolving a company in Wyoming.
How Long Does The State Take To Process The Dissolution?
The Secretary of State normally takes a week to finish processing dissolution documents.
When Can Another Business Use Your Company Name?
Wyoming implements name protection. Your company name will be safe for two years after dissolution.