How to Check on the Dissolution of a Business
A business dissolution can be triggered by a number of events. An involuntary business dissolution or administrative dissolution may occur for failure to pay certain state taxes, file annual reports required by the state of incorporation or by an involuntary bankruptcy initiated by three business creditors. A voluntary business dissolution may occur when a company files a voluntary bankruptcy under Chapter 7 or files Articles of Dissolution in the state of organization.
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Instructions
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Searching for Business Liquidation
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Call the business. Find the business telephone number at Switchboard or similar online directory website, or through a local print directory publication. A call to the business is the simplest way to find out if formal dissolution procedures have been instituted. Remember, however, that this type of information may not be provided through public phone inquiries if an official press release or other formal business notice has not be released by the company.
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Contact the company's registered agent or business incorporator to find out if the business is dissolved. Information on the registered agent and business incorporator for the company is required public information that will be available with the Secretary of State office where the business was organized. Most Secretary of State Offices have websites with searchable databases to obtain this contact information. Coordinated Legal Technologies provides a link to each available state's Secretary of State website.
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Check for a bankruptcy filing by the company. Bankruptcy filing information can be obtained through such paid databases, such as the Pacer Service Center, Westlaw, or LexisNexis. The Westlaw and LexisNexis commercial database programs also have paid alert services that will send an email when a bankruptcy filing occurs by a company designated in the alert system by its customer. In addition, bankruptcy filing information for businesses are frequently published in their local business newspapers, which may be available online with searchable databases. Depending on the size of the company, bankruptcy filing information will come up in a general search engine inquiry by submitting the name of the business and the word "bankruptcy."
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Search the Secretary of State's online website or call their office for information on business dissolution. Actions triggering dissolution will be logged as public record information with the Secretary of State's office where the company was organized. This may include the status of a voluntarily filed certificate of dissolution or an administrative dissolution for failure of the company to submit required annual reports or taxes with the Secretary of State. Some states require that the dissolution articles or certificate be filed before creditors and interested parties are notified.
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Tips & Warnings
The requirements for an effective voluntary business dissolution is governed by state law and will vary state by state.
A business liquidation (Chapter 7) or business reorganization (Chapter 11) is governed by federal bankruptcy law.
References
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