Generally speaking, dissolved entities can be sued just like any other business. This means that claims from years ago can come back to haunt you. Worse still, if you are knowingly doing business as a dissolved entity the party pursuing you could seek extra damages or, possibly come after you personally depending on the existence of a variety of factors. Fortunately, there are steps you can take to make sure that none of these scenarios ever happens to you or your business or that if they do, you’re completely prepared for them.
The best recipe for prevention is to be proactive. If your company’s dissolution is a planned one, this means it is crucial to immediately assess active and potential legal threats as soon as possible. Once these matters have been resolved or identified, proper notice of the impending dissolution can be given under an established protocol that works for both known and unknown claims. So long as the required notice is properly given and the particular time period – one hundred twenty (120) days for known claims and five (5) years for unknown claims – suits that are filed after that time period are generally barred.
Still facing a suit after giving notice? Worried that an unplanned dissolution might still cause you problems down the line? In these cases the best defense is often time. Like other states and federal claims, North Carolina has an established statute of limitations for cases filed here. If an action filed against your dissolved business is told old, this law can serve as an absolute defense. Other defenses may also be available depending on your specific case isn’t if the statute of limitations itself isn’t an option.
Dissolving your company? Let us help. Follow the Garrett, Walker, Aycoth and Olson business blog or contact one of our experienced Greensboro business attorneys at (336) 379-0539.