Aubrey W. Gladstone, president of Gladstone Consulting, Inc., has been leading businesses across the country for more than 40 years. In his role at Gladstone Consulting, Aubrey Gladstone advises clients in matters of problem resolution, litigation, and corporate liquidation.

Liquidating a company involves the sale of the company’s assets and compliance with often complicated regulations. The sale is usually a last resort for troubled companies, generally with proceeds generated by the sale of assets going toward the payment of the company’s outstanding debts. 

In some cases, assets are sufficient to repay shareholders and free them of liability by retiring corporate debt. If shareholders maintain control of their stocks, they may be liable for unpaid corporate obligations, if any remain after the liquidation.

The process of liquidating a corporation’s assets precedes the total dissolution and closure of the company. Dissolution is a voluntary process initiated by the company when they can pay-off company debts but don’t believe the company can ever be rebuilt. 

To complete a corporate dissolution, a company must pay all its local, state, and federal taxes and close each tax account related to the business. If these accounts are left open, the company remains liable for tax filings despite not being in operation.