A corporation is a separate legal entity created under state law. For tax and liability purposes, the corporation is treated as a separate taxpayer from its owners. In most cases, the shareholders of a corporation are shielded from personal liability for the debts and obligations of the corporation.
A corporation can be dissolved in the state of New York in a few simple steps. The process of dissolving a corporation is known as “winding up” and is described in section 1101 of the New York’s Business Corporation Act.
Generally, there are two reasons to dissolve a corporation:
(1) the corporation no longer wants to conduct business or
(2) the shareholders agree to dissolve the corporation.
This article will explain how to dissolve a corporation in New York.