{"id":402574,"date":"2026-08-09T08:40:07","date_gmt":"2026-08-09T13:40:07","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/?page_id=402574"},"modified":"2026-08-09T09:33:36","modified_gmt":"2026-08-09T14:33:36","slug":"do-you-need-a-lawyer-to-close-a-business","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/closing-a-business\/do-you-need-a-lawyer-to-close-a-business.html","title":{"rendered":"Do You Need a Lawyer To Close a Business?"},"content":{"rendered":"\n<div class=\"mdadded blockAdded user_id-51448  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\" suggestion_id=\"\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Do You Need a Lawyer To Close a Business?<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/susan-buckner-j-d\/\">Susan Buckner, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/catherine-hodder-esq\/\">Catherine Hodder, Esq.<\/a>\n                | Last updated\n        <time>\n                            August 09, 2026\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n<div class=\"fl-key-takeaways fl-mb30\" data-testid=\"fl-key-takeaways\">\n    <div class=\"fl-card-content\">\n        <div class=\"fl-card-body fl-card-bg-teal fl-flex fl-flex-column\">\n                            <h2 class=\"fl-card-title fl-h2 fl-no-margin\">Key Takeaways<\/h2>\n                        <p>Closing a business without a lawyer is legally permitted, but hiring an attorney is strongly recommended to protect owners from lingering <span data-term-id=\"59440063\">personal liability<\/span>. An attorney ensures proper filing of <span data-term-id=\"59440041\">articles of dissolution<\/span> with the <span data-term-id=\"59440026\">Secretary of State<\/span> and filing <span data-term-id=\"59440027\">final tax returns<\/span>. Lawyers also help to settle creditor debts, terminate commercial leases, and satisfy employee final pay and notification requirements.<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n<div><p>There are no legal requirements to have an attorney when you close your business. However, there are compelling reasons to use one to help wind up your affairs and handle the legal filings associated with ending a <span data-term-id=\"59440030\">business entity<\/span>. Tasks may include notifying the\u00a0<span data-term-id=\"59440026\">Secretary of State<\/span>, filing\u00a0<span data-term-id=\"59440041\">articles of dissolution<\/span>, informing creditors that you are no longer in business, issuing\u00a0<span data-term-id=\"59440053\">final paychecks<\/span>, and filing tax returns.<\/p>\n<p>Having an attorney nearby to answer questions and explain what goes into a <span data-term-id=\"59440040\">business dissolution<\/span> can be the safest way to shut down your business and avoid <span data-term-id=\"59440063\">personal liability<\/span>. Even if you ultimately decide to handle it yourself, meeting with a <a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">business attorney<\/a> about your shutdown is a good idea.<\/p>\n<h2>Steps for Closing a Business<\/h2>\n<p>Assuming all partners and officers agree, you can begin the legal paperwork involved with <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/closing-a-business.html\">closing your business<\/a>. If you have <span data-term-id=\"59440042\">bylaws<\/span> or an <span data-term-id=\"59440036\">operating agreement<\/span>, follow the provisions. For disagreements among owners, it may be time to bring in an attorney. Review the <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/closing-a-business\/settlement-and-distribution-of-assets-checklist.html\">steps for dissolving a business<\/a> before deciding whether you need an attorney\u2019s help.<\/p>\n<p>If you filed Articles of Incorporation, <span data-term-id=\"59440061\">Articles of Organization<\/span>, or Certificate of Limited <span data-term-id=\"59440025\">Partnership<\/span> when you began your business, you will need to file <span data-term-id=\"59440041\">Articles of Dissolution<\/span> to end it. This lets the <span data-term-id=\"59440026\">Secretary of State<\/span> know that you are no longer in business. Businesses affected by this are:<\/p>\n<ul>\n<li>Limited <span data-term-id=\"59440025\">partnerships<\/span> and Limited liability <span data-term-id=\"59440025\">partnerships<\/span><\/li>\n<li><span data-term-id=\"59440028\">Limited liability companies<\/span> (LLCs)<\/li>\n<li><span data-term-id=\"59440024\">Corporations<\/span><\/li>\n<\/ul>\n<p>You may need to file <span data-term-id=\"59440039\">annual reports<\/span> and get a <span data-term-id=\"59440057\">tax clearance<\/span> from the state before getting a <span data-term-id=\"59440037\">certificate of dissolution<\/span>.<\/p>\n<p><span data-term-id=\"59440033\">Sole proprietorships<\/span> or general\u00a0<span data-term-id=\"59440025\">partnerships<\/span>\u00a0were never formal\u00a0<span data-term-id=\"59440030\">business entities<\/span>. If you were one of these, you don\u2019t have to file any dissolution paperwork with the state.<\/p>\n<p>Next, review whether you have other responsibilities besides <span data-term-id=\"59440046\">filing dissolution documents<\/span>. These can include:<\/p>\n<ul>\n<li><span data-term-id=\"59440060\">Notifying the IRS<\/span><\/li>\n<li>Paying final income and payroll taxes under your <span data-term-id=\"59440029\">employer identification number<\/span> (EIN)<\/li>\n<li>Paying all business debts<\/li>\n<li>Terminating all outstanding contracts with <span data-term-id=\"59440048\">service providers<\/span> and settling other financial obligations<\/li>\n<li>Paying <span data-term-id=\"59440053\">final paychecks<\/span> according to state laws<\/li>\n<li>Disposing of remaining assets and business property<\/li>\n<\/ul>\n<p>All of these tasks should be handled properly to avoid any liability coming back to you. If things seem to be getting complicated, it might be time to <a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">speak with a business attorney<\/a>.<\/p>\n<h2>When To Consider Having an Attorney During a <span data-term-id=\"59440038\">Business Closure<\/span><\/h2>\n<p>Shutting down a business is rarely a delightful experience. An attorney can help you if any or all of these factors apply in your case:<\/p>\n<ul>\n<li><strong><span data-term-id=\"59440043\">Outstanding debts<\/span> with creditors or <span data-term-id=\"59440035\">lenders<\/span><\/strong>: You must <span data-term-id=\"59440044\">notify creditors<\/span>, <span data-term-id=\"59440035\">lenders<\/span>, and lien-holders of your intent to dissolve the business. In some cases, you may need to arrange payment of debts before you can close the business.<\/li>\n<li><strong>Outstanding orders or contracts<\/strong>: You can\u2019t walk away from certain requirements or contracts if the buyer cannot easily obtain the goods elsewhere. This may entail giving them time to find a new supplier.<\/li>\n<li><strong>Terminating other contracts and leases<\/strong><\/li>\n<li><strong>Buy-outs or sales as part of an <span data-term-id=\"59440036\">operating agreement<\/span><\/strong><\/li>\n<li><strong>Employees<\/strong>: Having employees can greatly complicate a business closing<\/li>\n<\/ul>\n<p>If you have more than 100 full-time employees, the <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/the-worker-adjustment-and-retraining-notification-act-warn.html\"><span data-term-id=\"59440062\">Worker Adjustment and Retraining Notification Act<\/span> (WARN)<\/a> may apply before you can close the business. The WARN Act requires at least 60 calendar days of advance written notice before a business can shut down, giving workers time to search for new employment.<\/p>\n<p>In all states, employees have the <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/final-paycheck-laws-by-state.html\">right to receive their <span data-term-id=\"59440053\">final paycheck<\/span> within a certain period, which may be as soon as the same day or the <\/a>next business day. If your workers have health insurance, they must be given the option to continue coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA).<\/p>\n<p>Any of these can come back to bite you if neglected. If you\u2019re not 100% sure you\u2019ve covered every base, consider <a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">getting legal advice<\/a> before shuttering your company.<\/p>\n<h2>What Are the Risks of Closing a Business Without an Attorney?<\/h2>\n<p>Not having an attorney when you close down can save money at the time. However, you risk missing something and exposing yourself to trouble months or years after you lock the doors.<\/p>\n<h3><span data-term-id=\"59440063\">Personal Liability<\/span><\/h3>\n<p>Business owners usually form limited <span data-term-id=\"59440025\">partnerships<\/span>, LLCs, and <span data-term-id=\"59440024\">corporations<\/span> to protect their assets from business creditors. A formal dissolution, like a bankruptcy, gives creditors notice of the impending closure. Outstanding creditors can make claims and request payment before the business closes. Without proper <span data-term-id=\"59440040\">business dissolution<\/span>, creditors can sue you despite the company having technically disappeared.<\/p>\n<h3>Tax Issues<\/h3>\n<p>Your <span data-term-id=\"59440027\">final tax return<\/span> is part of closing up the business. Some states require a <span data-term-id=\"59440027\">final tax return<\/span> before you complete the dissolution process. The IRS wants your final taxes after your business has closed operations and everyone has been paid. If you fail to file your last set of taxes properly, the IRS can come after you and your former partners for any penalties and back taxes.<\/p>\n<h3>Future Lawsuits<\/h3>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/closing-a-business\/ten-things-to-think-about-being-sued-after-you-close-your.html\">You can be sued<\/a> months or years after you close your business. Former creditors, ex-employees, and past landlords can all seek relief if you didn\u2019t wind down your business and pay everyone according to legal requirements. Even if your oversight was accidental, that doesn\u2019t mean you can\u2019t face legal action.<\/p>\n<h3>Ongoing Tax and License Fees<\/h3>\n<p>Business licenses and permits can linger for years after your business closes unless you <span data-term-id=\"59440054\">cancel business licenses<\/span>. When dissolving your business, contact the <span data-term-id=\"59440026\">Secretary of State<\/span>\u2019s office, state or county business license office, and local city offices to terminate business licenses and tax accounts. If you have a DBA, fictitious name, or trade name, you must file a Statement of Trade Name Withdrawal or Fictitious Business Name Abandonment.<\/p>\n<h2>How a Lawyer Helps With <span data-term-id=\"59440038\">Business Closure<\/span><\/h2>\n<p>When it\u2019s time to shut down the business and <span data-term-id=\"59440047\">distribute remaining assets<\/span>, you and your partners need someone to help with the legal paperwork. The attorney will need to sit down with all your documentation in one place and assemble a dissolution file, much like you assembled a start-up file when it was time to begin operations. There are other concerns to be tended to as well:<\/p>\n<ul>\n<li>In formal dissolutions, <span data-term-id=\"59440024\">corporations<\/span>, limited <span data-term-id=\"59440025\">partnerships<\/span>, and LLCs must formally vote on and file \u201c<span data-term-id=\"59440041\">Articles of Dissolution<\/span>\u201d with the <span data-term-id=\"59440026\">Secretary of State<\/span>. This is an official document that tells the state you\u2019re no longer in business. Any claims or requests about your company will receive a notice that you have ceased operations. A lawyer can prepare and file documentation and assist with <span data-term-id=\"59440057\">tax clearances<\/span>.<\/li>\n<li>Government notification requires <span data-term-id=\"59440060\">notifying the IRS<\/span>, the state franchise tax board (and state tax number if different), and other state boards. Your attorney will have a list of who to notify and how to do it properly.<\/li>\n<li>If you have more than 100 employees, you must <span data-term-id=\"59440055\">notify employees<\/span> according to the WARN Act. Your attorney will know how to draft the notification and how to present it to employees.<\/li>\n<li>Financial obligations surrounding a dissolution are complicated. You must pay final taxes, payroll, and creditors according to a set financial schedule. Your attorney will explain how assets can be sold and distributed under state law.<\/li>\n<li>Final winding down operations may include terminating any leases, canceling and settling contracts, and liquidating your remaining inventory. At this stage, an attorney is invaluable in settling your final debts and negotiating remaining debts with your creditors.<\/li>\n<\/ul>\n<p>The owners are the last ones to get paid once everything is settled. Your attorney\u2019s help will ensure all steps have been taken to complete your\u00a0<span data-term-id=\"59440038\">business closure<\/span>.<\/p>\n<h2>How To Prepare for Your Meeting with a Business Attorney<\/h2>\n<p>When you meet with your attorney to dissolve your business, being prepared is a huge help for all involved. Have all your <span data-term-id=\"59440045\">business records<\/span> in one place before sitting down and discussing how to close the business.<\/p>\n<p>You will need:<\/p>\n<ul>\n<li><strong>Business formation documents<\/strong>: Articles of Incorporation, <span data-term-id=\"59440025\">Partnership<\/span> agreements, <span data-term-id=\"59440036\">operating agreements<\/span>, any changes made to your agreements over the years<\/li>\n<li><strong>Financial records<\/strong>: The last four years\u2019 tax returns, a list of business debts and assets, <span data-term-id=\"59440049\">business bank account<\/span>(s), business credit card statements, payroll, etc.<\/li>\n<li><strong>Operating information<\/strong>: Leases, major contracts, accounts receivable, employee lists, equipment rentals, and so on<\/li>\n<li><strong>ID information<\/strong>: EIN, state and local business licenses, <span data-term-id=\"59440034\">sales tax<\/span> numbers, operating licenses, operating permits, anything you pay a fee for<\/li>\n<\/ul>\n<p>Dissolving a business is very similar to <span data-term-id=\"59440052\">filing for bankruptcy<\/span>. Having everything required close at hand can make it as painless as possible.<\/p>\n<h2>Closing Your Business? Speak With an Attorney<\/h2>\n<p>Closing your business isn\u2019t as simple as flipping the switch and walking away. Even an honest mistake can result in liability long after the business has closed down. Give yourself the peace of mind by consulting a <a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">business and commercial law attorney<\/a>\u00a0to help you close your business legally, safely, and permanently.<\/p><\/div>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" 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