When you finally decide to wind up your business either as a result of a unanimous agreement between the business partners or a directive of the court, settlement and distribution of assets form an essential part in the winding-up process. Federal and state statutes like the Indianapolis business law have regulations on the institution and winding up of businesses; therefore when the time finally comes to go through the process, it is important that you consult with an Indiana business lawyer from the law office of McClure McClure & Davis, to ensure that all acts carried out are within the provisions of the statutes.
Further, reporting the settlement reached to tax authorities and in particular the Internal Revenue Service is equally important, and it is possible to overlook such making of such important reports if a competent Indiana Litigation attorney is not guiding you. Before you commence the winding-up process, you need to be aware of the fact that the process can be complicated more so if there are several assets involved. Our lawyers from McClure McClure & Davis are well aware of the complexities settlement and distribution of assets can present during the winding-up process of a business. Therefore they are well versed in all aspects of settlement and asset distribution and in particular Indiana Litigation in the event parties to the business fail to reach an out of court agreement.
Before you decide on the settlement and distribution of assets, you will need a checklist to ensure that you are winding up the right way.
Type of business
In this case, scenario, if your business is a partnership, you have to ensure that important obligations and contracts have been finalized. Also, it is imperative to ensure that all partnership creditors have been paid. The partnership properties also have to be appraised per the book value reflected in the balance sheet. The appraisal has to be for the last month before a decision for winding up was reached. Partnership liabilities have to be settled, and subsequently, the partners have to ensure that the fees applicable for the winding-up process have been duly paid. To best understand all the requirements, you will need to understand Indianapolis business litigation processes for winding up, and this is more reason why you need to work with an attorney. State statutes give provisions on how assets that remain after business liabilities have been settled. Our team of lawyers will ensure that your business follows the laid down procedures and that every partner receives the exact percentage they deserve.
Importance of having a plan and a checklist
Similar procedures apply across all types of businesses. As you are aware, businesses can either be partnerships, corporations, limited liability companies. Statutory provisions are very clear when giving procedures to be followed by each type of business. Therefore you must have a checklist on what needs to be done during the winding-up process for your type of business. It would be best if you didn’t confuse the procedures applicable to the other types of business and yours. As much as the procedures of winding up and direction on settlement and distribution of assets might be similar, there might be differences that you need to take note of.
The role of a lawyer in your case
Lawyers are well aware of the requirements and legal procedures to be followed during the winding-up process of a business. Our business lawyers have expertise in Indianapolis Litigation; therefore, you stand to be represented by a team with both Courtroom expertise and out of court settlements.
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