{"ok":true,"canonical_url":"https://dealroom.so/glossary/dissolution","api_url":"https://dealroom.so/api/public/glossary/dissolution","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"dissolution","term":"Dissolution","group":"Doing the deal","definition":"The formal legal process of closing down a business entity, effectively ending its legal existence. As a buyer, you must ensure the seller properly dissolves the selling entity if it is not being acquired.","what_it_means":"If you are purchasing the assets of a business, the seller's original legal entity often remains after the sale and must be formally dissolved. Ensure your purchase agreement clearly specifies who is responsible for this process, as unresolved liabilities from the seller's old entity could potentially create issues for you down the line.","url":"https://dealroom.so/glossary/dissolution","official_sources":[],"related":[{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"}],"related_questions":[{"question":"Can a past business failure or dissolution from a previous venture impact my SBA 7(a) eligibility?","url":"https://dealroom.so/sba-7a/questions/can-a-past-business-failure-or-dissolution-from-a-previous-venture-impact-my-sba-7-a-eligi"},{"question":"How does a previous business failure or company dissolution affect my chances for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/how-does-a-previous-business-failure-or-company-dissolution-affect-my-chances-for-an-sba-7"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Dissolution","url":"https://dealroom.so/glossary/dissolution","source_type":"DealRoom Data"}}