Dissolution does not end the existence of a business entity.

In Tennessee, ceasing the existence of a business entity is a two step process: (1) Dissolution and (2) Termination.

Filing dissolution documents is the first step and requires the business to wind-up its business and affairs. Once that is complete and the entity has obtained a Certificate of Tax Clearance for Termination/Withdrawal from the Tennessee Department of Revenue, the business entity may file termination documents.

Until termination documents have been filed, the business entity will still be required to file annual reports and pay taxes to the Department of Revenue.