Voluntary dissolution in New York refers to the process of voluntarily terminating the existence of a business entity. This occurs when the owners of the business decide to close down the business and wind up its affairs.
To initiate a voluntary dissolution in New York, the owners of the business must first obtain the consent of a majority of the shareholders or members, depending on the type of entity. Then, the business must file a Certificate of Dissolution with the New York Department of State.
The Certificate of Dissolution must include the name of the business entity, the date of the vote to dissolve, and a statement that the business has settled all outstanding debts and obligations. If the Department of State approves the Certificate of Dissolution, the business will be considered dissolved and its legal existence will come to an end.
It is important to note that there may be other legal and financial requirements that need to be addressed during the voluntary dissolution process, such as notifying creditors and canceling licenses or permits. Therefore, it is recommended to seek the advice of an attorney or a qualified professional to assist with the process.
