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Dissolving Corporations
When your corporation is no longer necessary or when it has remained dormant for some time, it can be beneficial to dissolve your corporation. There can be some serious liability issues for dissolving your corporation without taking the necessary steps.
Our firm will be happy to help you through the process of dissolving your corporation. We have helped corporations pass the necessary shareholder and director approvals, helped organize the filing of any missing tax returns and filing the Articles of Dissolution with the government.
Considerations to Make Before Dissolving
Have All Creditors Been Paid?
One of the first obligations of the corporation are to ensure that all debts of the corporation have been paid. You may need to advise all creditors of the corporation of your intent to dissolve. If you dissolve your corporation without telling creditors, they may move to revive the corporation or personally sue the directors and shareholders to the extent of the assets distributed to shareholders.
This consequence can be especially severe if a director or shareholder dissolves one company, just to start a similar one.
Tax Filings
You must ensure that your taxes are up to date and that all tax filings have been made. This step should be easy, but it can be difficult to remedy if you neglected to file your taxes for the past several years.
Dissolution Documents
Once you have completed the necessary Shareholder or director approvals, confirmed all creditors have been paid and all tax returns have been filed, you can then file the Articles of Dissolution. There will be other steps required before your corporation is fully dissolved.
Want Us to Give You a Quote?
You have a right to pick the lawyer that best fits your needs. If you want us to give you a free quote, please feel free to call us at (705) 476-6600 or email us at info@sangsterlaw.ca.
