Your Business is Dead – Are You Liable for its Obligations?
Last month, I wrote about how to terminate a company’s existence by dissolution (How to Kill Your Company when that’s the Only Choice).
Since then, people have asked me what their personal responsibility is under California law if the corporation or LLC had outstanding obligations at the time it was dissolved.
Assuming that you go through the dissolution process properly and that you do not have any “alter ego” problems, your personal liability generally will be limited to the amount of any distributions that you received at the time of dissolution.
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact an attorney directly.