Now that you are ceasing business operations, your remaining task is to terminate the entity. You want to file documents required for the entity to cease to exist. Unfortunately, as is the case with most legal matters, it is not that simple. There are important issues that must be considered, and NDHA is ready to assist you with both the business and tax issues that need to be considered.
The first issue in a business termination is the distribution of the assets. Before an entity that is being terminated distributes property to the equity holders, such entity must use its assets to satisfy the entity’s unpaid debts. Assets of the entity can be distributed to the equity holders only after the unpaid debts of the entity have been paid or otherwise provided for in some manner.
The next issue are the tax consequences of the termination, which will vary significantly depending upon the type of entity. NDHA can advise you as to the tax consequences of the termination of any type of entity.