Exactly follow the dissolution notification procedures set forth in your state statutes. In many states, if you notify creditors and the public, you will be able to limit the amount of time in which a person who is later injured may bring suit. If you do not follow notification statutes, the time in which a person can bring a suit against you will last much longer. For example, your state may have a law that says, as long as you follow notification procedures, you can only be sued for three years following your dissolution. After your business has closed, keep your corporate records in order.
Most states have laws that deal with disposing of claims against a dissolving or dissolved business.
In most cases, even after the business is dissolved, it will continue to exist for the purposes of settling claims. Determine the statutory time limitations for bringing a suit against your business. If you were involved in a business that manufactured products that may cause future injuries, consider reserving a portion of your liquidation distribution for the time period during which a person can bring suit. If you were incorporated, the claimant will only be able to recover what you received in distributions. This is also an issue that you might want to consider when purchasing commercial liability insurance.