Business Law

Business Dissolution.

A dormant entity keeps costing you until it’s properly closed. We wind your corporation or LLC down cleanly, current on taxes, filed with the state, so it stops the meter and the liability.

Reviewed by Elizabeth A. Tresp, JD, LL.M., trust & probate litigator · Updated July 2026

In short A dormant corporation or LLC keeps costing you, annual taxes and fees, filings, and lingering liability, until it is properly dissolved. Winding an entity down correctly (not just abandoning it) protects you from tax and creditor surprises. We handle the whole process.

When a business has run its course, simply walking away is a mistake: an entity that is abandoned rather than dissolved can keep accruing taxes, fees, and penalties, and can leave owners exposed. A proper dissolution closes the entity cleanly with the state and the tax authorities.

Corporation dissolution

Tired of paying taxes every year for a dormant corporation? We dissolve it for you, making sure the corporation is current on all taxes and filing the necessary documents with the Secretary of State and the Franchise Tax Board.

LLC dissolution

The same applies to a dormant LLC. We bring the LLC current on all taxes and file the required documents with the Secretary of State and the Franchise Tax Board so it is properly wound down, particularly important in a state like California, whose $800 minimum franchise tax keeps running until the entity is formally dissolved (one more reason to be thoughtful about where you incorporate in the first place).

The filing and ongoing corporate compliance are handled by our affiliated Tresp Corporate Services, which forms entities and provides registered-agent and corporate-compliance services in all 50 states, corporate paper and compliance only, never legal advice. Our attorneys provide the legal strategy and the documents that make the entity a real foundation. We explain the why; they execute the how.

To discuss your business with our attorneys, call (858) 755-6672 or request a consultation.

Common questions

Frequently asked

Why can't I just stop using my LLC or corporation?

Because an entity that is abandoned but not dissolved generally keeps accruing annual taxes, fees, and filing obligations, in California, that includes the $800 minimum franchise tax every year, and can leave owners exposed to penalties or claims. A formal dissolution closes it out cleanly with the state and tax authorities, ending those obligations.

What does dissolving a business involve?

Bringing the entity current on all taxes, settling obligations, and filing the required dissolution documents with the Secretary of State and (in California) the Franchise Tax Board. We handle the process so the entity is wound down properly rather than left to accrue liabilities.

This overview is general information, not legal or tax advice, and does not create an attorney-client relationship?

This overview is general information, not legal or tax advice, and does not create an attorney-client relationship. Every situation is different and the law changes; consult a qualified attorney about your circumstances.

This website is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Every situation is different; please consult a qualified attorney about your specific circumstances.

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