What is Liquidation
What is Liquidation?


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What is Liquidation?

Liquidation sometimes refers to the process of closing a Business. Liquidation technically is part of the Winding Up process, some form of which which all states require in order to legally close a Business.

When a Corporation or LLC is initially formed it has to register with the state agency responsible for administering business records in that state. This is usually the Secretary of State but may be the Department of Treasury or some other state agency.

If a Corporation or LLC wants to end its Business after it has registered with the Secretary of State it has to officially notify the Secretary of State of its intentions. Most states call the process of closing a Company "Dissolution". Some states refer to the Business closing process as Business Cancellation or Business Termination.

Most states require the filing of some form of Articles of Dissolution in order to legally close a Business. There is usually a small fee for the filing of Articles of Dissolution. Some states do not charge a fee for filing Articles of Dissolution.

Dissolution, along with Liquidation is part of the Winding Up process that is required in order to legally close a Business.

The Winding Up process includes all actions required to make the Dissolution of a Company legal. Liquidation is part of the Winding Up process. Liquidation includes sales of all assets which the Corporation or LLC owns.

The requirements for Winding Up and Liquidation vary from state to state.

Sometimes disposing of the real estate or other assets which a Company owns takes time and most states allow a Corporation or LLC a reasonable time period to complete the Liquidation process.

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Administrative Dissolution
Agent for Service of Process
Articles of Incorporation
Articles of Organization
Assumed Name
At Will LLC
Authorized Shares
B Corporation
Benefit Corporation
Board of Directors
Business Dissolution
Business Entity
Certificate of Existence
Certificate of Status
Certified Copy
Close Corporation
Common Stock
Corporate Bylaws
Corporate Name Reservation
Corporate Stock
Disregarded Entity
Excise Tax
Federal Tax ID
Ficticious Name
Foreign Qualification
Franchise Tax
General Partnership
Good Standing Certificate
Involuntary Dissolution
IRS Form 966
Limited Liability Company
Limited Partnership
Majority Shareholder
Non-Stock Corporation
Nonprofit Corporation
Obligated Member LLC
Paid-in Capital
Paid-in Surplus
Par Value
Personal Service Corporation
Preferred Stock
Privilege Tax
Professional Corporation
Professional Service
Registered Agent
Registered Office
Reporting Requirements
S Corporation
Series LLC
Service Mark
Sole Proprietor
Stated Capital
Statutory Agent
Stock Certificate
Term LLC
Trade Name
Winding Up
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