Dissolve an entity

Last updated Jun 14, 2026

Plan of dissolution, certificate of dissolution, creditor notice, final tax filings, and §281 distribution waterfall.

6 calls · 5 webhooks · spans 90+ days

Trigger

The board has decided to wind down. The entity is solvent.

Call sequence

1. Run dissolution readiness

GET /v1/entities/{id}/dissolution_readiness

2. Cancel all outstanding convertibles

POST /v1/convertibles/cancel_all  { entity }

3. File certificate of dissolution

POST /v1/dissolutions  { entity, plan }

4. Open creditor claims window

POST /v1/dissolutions/{id}/creditor_window/start

5. Calculate §281 distribution

POST /v1/dissolutions/{id}/distribution/calculate

6. Distribute

POST /v1/dissolutions/{id}/distribute

Idempotency

Dissolution creation idempotent on `entity`. Only one open dissolution per entity.

Webhooks

Event	Description
`dissolution.filed`	Certificate accepted.
`creditor_claims_window.opened`	Notice published.
`creditor_claim.received`	Per claim.
`dissolution.completed`	Final distribution done.

Errors

Status	Code	Description
`409`	`dissolution_in_progress`	There is already an active dissolution.

Dissolve an insolvent entityLong-form §280 procedure.

Pre-flight readiness

Before invoking the dissolve verb, fetch a typed DissolutionReadiness report. It returns an iterable blockers[] array — one entry per unmet obligation, each with a category, severity, and remediation pointing at the endpoint that clears it. Distinct from the ?dry_run=true path on /dissolve, which surfaces blockers only as an error envelope.

curl https://api.mattermode.com/v1/entities/ent_Nq3KcAbc/dissolution_readiness \
  -H "Authorization: Bearer $MATTER_KEY" \
  -H "Matter-Version: 2026-05-01"

Response shape:

{
  "object": "dissolution_readiness",
  "entity_id": "ent_Nq3KcAbc",
  "executable": false,
  "procedure_recommended": "default_281",
  "blockers": [
    {
      "category": "outstanding_convertible",
      "severity": "human_remediable",
      "summary": "1 outstanding SAFE held by an angel investor",
      "remediation": {
        "suggested_endpoint": "POST /v1/entities/{id}/convertibles/{id}/cancel",
        "suggested_payload": { "reason": "holder_written_off" }
      }
    },
    {
      "category": "foreign_qualification_pre_flight",
      "severity": "human_remediable",
      "state": "US-CA",
      "summary": "California requires final SI-550, final Form 100, and FTB Tax Clearance Certificate before SoS accepts Form SURC.",
      "remediation": {
        "sub_steps": [
          { "step": 1, "summary": "File final CA Statement of Information",
            "suggested_endpoint": "POST /v1/filings",
            "suggested_payload": { "type": "ca_statement_of_information_final" } },
          { "step": 2, "summary": "File final CA Form 100",
            "suggested_endpoint": "POST /v1/filings",
            "suggested_payload": { "type": "ca_form_100_final" } },
          { "step": 3, "summary": "Request FTB Tax Clearance Certificate",
            "suggested_endpoint": "POST /v1/filings",
            "suggested_payload": { "type": "ca_ftb_tax_clearance_request" } },
          { "step": 4, "summary": "File Form SURC with CA SoS",
            "suggested_endpoint": "POST /v1/filings",
            "suggested_payload": { "type": "ca_certificate_of_surrender" },
            "blocked_until": ["step_1", "step_2", "step_3"] }
        ]
      }
    },
    {
      "category": "accounting_attestation",
      "severity": "human_remediable",
      "summary": "Final AP/AR reconciliation attestation required before dissolve fires."
    }
  ],
  "estimated_cost_breakdown": {
    "de_cod_fee_usd": 254,
    "final_franchise_tax_usd": 400,
    "per_state_withdrawal_fees_usd": [{ "state": "US-CA", "amount_usd": 0 }]
  },
  "expected_timeline": {
    "earliest_filing_date": "2026-12-31",
    "creditor_window_close_date": "2027-03-01",
    "terminal_dissolution_date": "2027-03-15"
  }
}

Walk the list, clear each entry, then re-fetch until executable: true. The ordering matters for per-state cascades: file each sub_steps[] entry in sequence, observe its blocked_until references, and only proceed once each prerequisite filing reaches accepted status.

Creditor claims window

For procedure: default_281 (the most common path) DGCL §281 requires a 60-day creditor-notice window before the Certificate of Dissolution can file. Open the window explicitly with POST /v1/entities/{id}/creditor_claims_window/start:

curl -X POST https://api.mattermode.com/v1/entities/ent_Nq3KcAbc/creditor_claims_window/start \
  -H "Authorization: Bearer $MATTER_KEY" \
  -H "Matter-Version: 2026-05-01" \
  -H "Idempotency-Key: $(uuidgen)" \
  -H "Content-Type: application/json" \
  -d '{
    "procedure": "default_281",
    "publish": false,
    "known_creditors": [
      {
        "recipient_name": "Acme Cloud Services",
        "notice_channel": "certified_mail",
        "address": { "line1": "1 Market St", "city": "San Francisco", "region": "CA", "postal_code": "94105", "country": "US" }
      }
    ]
  }'

The response is a CreditorClaimsWindow (ccw_*). Matter dispatches the notice_of_dissolution Document to each known_creditors[] entry on the chosen channel and records the per-recipient notice trail.

While the window is open:

Record incoming claims via POST /v1/creditor_claims_windows/{id}/claims.
Settle each claim (or deny it) via POST /v1/creditor_claims_windows/{id}/claims/{claim_id}/settle. Settling with outcome: settled requires a settlement_document_id pointing at an executed settlement_agreement.

When closes_at passes, the window auto-transitions to closed and the dissolve cascade unblocks the Certificate of Dissolution filing.

§281 distribution waterfall

Once the creditor window closes, the §281 distribution computes the post- satisfaction residual and walks the share-class liquidation preferences in seniority order. Run the calculation with POST /v1/dissolutions/{id}/distribution/calculate to surface a dry-run waterfall — every preferred class is paid its preference plus participation (if any), then common holders share the remainder pro-rata.

The waterfall response carries the per-holder amounts, the per-class exhaustion points, and any unsatisfied claims rolled forward into the §278 tail. Re-run after each settled creditor claim — the residual changes as known liabilities resolve.

Distribute via POST /v1/dissolutions/{id}/distribute. The platform records a dissolution_distribution ShareLedgerEntry per holder, dispatches a payout instruction to the entity's wind-down account, and emits dissolution.distributed per recipient. Holders with reachable banking detail get an ACH; the rest receive a paper check via the registered agent's lockbox.

Error recovery

Failure	Cause	Remediation
`409 Conflict` `invalid_state_transition`	Entity is in `dissolved`, `draft`, `submitted`, or `cancelled`.	Cannot dissolve. Inspect `Entity.status` and pick the correct path.
`409 Conflict` `outstanding_obligations`	Unfiled franchise tax or unpaid state fees.	Run `file_all_due` with `within_days: 365`, then retry. The error includes the obligations list.
`403 Forbidden` `tier_4_cannot_dissolve`	Token is tier-4 autonomous.	Re-issue a tier-3 token; tier-4 cannot dissolve under any policy.
`423 Locked` `pending_corporate_transaction`	Open M&A envelope (`CorporateTransaction` not in `closed`).	Cancel or close the transaction first.
`408 Request Timeout` after `authorization.created`	Human signer didn't approve within 14 days.	Authorization auto-expires; the cascade reverts to `active`. Re-fire the workflow.

Full taxonomy: errors.

Variations

Delaware short-form dissolution under §280 — faster, but requires no creditors and unanimous board approval. Skips the creditor-notice window.

{
  "entity_id": "ent_Nq3KcAbc",
  "reason": "no_business",
  "procedure": "elective_280"
}

Entities in suspended status (compliance lapse) can still dissolve. Matter clears the suspension's underlying obligation as part of the cascade.

{
  "entity_id": "ent_Nq3KcAbc",
  "reason": "compliance_default_unrecoverable",
  "procedure": "default_281",
  "clear_suspension": true
}

If the entity is foreign-qualified in additional states, dissolution cascades through every jurisdiction's certificate-of-withdrawal filing first, then the home-state Certificate of Dissolution. Foreign qualifications and state registrations (employer / sales-tax / DBA / business-license accounts) close independently because the same entity often has one without the other — a remote employee in MA triggers a state employer registration without triggering foreign qualification.

{
  "entity_id": "ent_Nq3KcAbc",
  "reason": "strategic_wind_down",
  "procedure": "default_281",
  "closures": {
    "qualifications": "all",
    "state_registrations": "all"
  }
}

To close only some qualifications or registrations, switch the corresponding field to "specified" and supply IDs in specified_qualifications[] or specified_state_registrations[]. Use "none" to skip a category entirely (e.g., DE-only entity has no foreign qualifications to withdraw).

The response's filings[] array grows by one per qualified state plus one per closed registration. Each per-state cascade walks its own pre-flight gate (final returns marked final, agency clearance request, SoS surrender form) ordered via Filing.depends_on[].

FAQ

POST /v1/entities/{id}/dissolve — the underlying primitive
Lifecycle state machine — terminal-state guarantees
Authorizations — the human-signature pause model
matter_dissolve_company — the MCP tool that wraps this recipe

Last updated Jun 14, 2026

Plan of dissolution, certificate of dissolution, creditor notice, final tax filings, and §281 distribution waterfall.

6 calls · 5 webhooks · spans 90+ days

Trigger

The board has decided to wind down. The entity is solvent.

Call sequence

1. Run dissolution readiness

GET /v1/entities/{id}/dissolution_readiness

2. Cancel all outstanding convertibles

POST /v1/convertibles/cancel_all  { entity }

3. File certificate of dissolution

POST /v1/dissolutions  { entity, plan }

4. Open creditor claims window

POST /v1/dissolutions/{id}/creditor_window/start

5. Calculate §281 distribution

POST /v1/dissolutions/{id}/distribution/calculate

6. Distribute

POST /v1/dissolutions/{id}/distribute

Idempotency

Dissolution creation idempotent on `entity`. Only one open dissolution per entity.

Webhooks

Event	Description
`dissolution.filed`	Certificate accepted.
`creditor_claims_window.opened`	Notice published.
`creditor_claim.received`	Per claim.
`dissolution.completed`	Final distribution done.

Errors

Status	Code	Description
`409`	`dissolution_in_progress`	There is already an active dissolution.

Dissolve an insolvent entityLong-form §280 procedure.

Pre-flight readiness

curl https://api.mattermode.com/v1/entities/ent_Nq3KcAbc/dissolution_readiness \
  -H "Authorization: Bearer $MATTER_KEY" \
  -H "Matter-Version: 2026-05-01"

Response shape:

{
  "object": "dissolution_readiness",
  "entity_id": "ent_Nq3KcAbc",
  "executable": false,
  "procedure_recommended": "default_281",
  "blockers": [
    {
      "category": "outstanding_convertible",
      "severity": "human_remediable",
      "summary": "1 outstanding SAFE held by an angel investor",
      "remediation": {
        "suggested_endpoint": "POST /v1/entities/{id}/convertibles/{id}/cancel",
        "suggested_payload": { "reason": "holder_written_off" }
      }
    },
    {
      "category": "foreign_qualification_pre_flight",
      "severity": "human_remediable",
      "state": "US-CA",
      "summary": "California requires final SI-550, final Form 100, and FTB Tax Clearance Certificate before SoS accepts Form SURC.",
      "remediation": {
        "sub_steps": [
          { "step": 1, "summary": "File final CA Statement of Information",
            "suggested_endpoint": "POST /v1/filings",
            "suggested_payload": { "type": "ca_statement_of_information_final" } },
          { "step": 2, "summary": "File final CA Form 100",
            "suggested_endpoint": "POST /v1/filings",
            "suggested_payload": { "type": "ca_form_100_final" } },
          { "step": 3, "summary": "Request FTB Tax Clearance Certificate",
            "suggested_endpoint": "POST /v1/filings",
            "suggested_payload": { "type": "ca_ftb_tax_clearance_request" } },
          { "step": 4, "summary": "File Form SURC with CA SoS",
            "suggested_endpoint": "POST /v1/filings",
            "suggested_payload": { "type": "ca_certificate_of_surrender" },
            "blocked_until": ["step_1", "step_2", "step_3"] }
        ]
      }
    },
    {
      "category": "accounting_attestation",
      "severity": "human_remediable",
      "summary": "Final AP/AR reconciliation attestation required before dissolve fires."
    }
  ],
  "estimated_cost_breakdown": {
    "de_cod_fee_usd": 254,
    "final_franchise_tax_usd": 400,
    "per_state_withdrawal_fees_usd": [{ "state": "US-CA", "amount_usd": 0 }]
  },
  "expected_timeline": {
    "earliest_filing_date": "2026-12-31",
    "creditor_window_close_date": "2027-03-01",
    "terminal_dissolution_date": "2027-03-15"
  }
}

Creditor claims window

curl -X POST https://api.mattermode.com/v1/entities/ent_Nq3KcAbc/creditor_claims_window/start \
  -H "Authorization: Bearer $MATTER_KEY" \
  -H "Matter-Version: 2026-05-01" \
  -H "Idempotency-Key: $(uuidgen)" \
  -H "Content-Type: application/json" \
  -d '{
    "procedure": "default_281",
    "publish": false,
    "known_creditors": [
      {
        "recipient_name": "Acme Cloud Services",
        "notice_channel": "certified_mail",
        "address": { "line1": "1 Market St", "city": "San Francisco", "region": "CA", "postal_code": "94105", "country": "US" }
      }
    ]
  }'

While the window is open:

Record incoming claims via POST /v1/creditor_claims_windows/{id}/claims.
Settle each claim (or deny it) via POST /v1/creditor_claims_windows/{id}/claims/{claim_id}/settle. Settling with outcome: settled requires a settlement_document_id pointing at an executed settlement_agreement.

When closes_at passes, the window auto-transitions to closed and the dissolve cascade unblocks the Certificate of Dissolution filing.

§281 distribution waterfall

Error recovery

Failure	Cause	Remediation
`409 Conflict` `invalid_state_transition`	Entity is in `dissolved`, `draft`, `submitted`, or `cancelled`.	Cannot dissolve. Inspect `Entity.status` and pick the correct path.
`409 Conflict` `outstanding_obligations`	Unfiled franchise tax or unpaid state fees.	Run `file_all_due` with `within_days: 365`, then retry. The error includes the obligations list.
`403 Forbidden` `tier_4_cannot_dissolve`	Token is tier-4 autonomous.	Re-issue a tier-3 token; tier-4 cannot dissolve under any policy.
`423 Locked` `pending_corporate_transaction`	Open M&A envelope (`CorporateTransaction` not in `closed`).	Cancel or close the transaction first.
`408 Request Timeout` after `authorization.created`	Human signer didn't approve within 14 days.	Authorization auto-expires; the cascade reverts to `active`. Re-fire the workflow.

Full taxonomy: errors.

Variations

Delaware short-form dissolution under §280 — faster, but requires no creditors and unanimous board approval. Skips the creditor-notice window.

{
  "entity_id": "ent_Nq3KcAbc",
  "reason": "no_business",
  "procedure": "elective_280"
}

Entities in suspended status (compliance lapse) can still dissolve. Matter clears the suspension's underlying obligation as part of the cascade.

{
  "entity_id": "ent_Nq3KcAbc",
  "reason": "compliance_default_unrecoverable",
  "procedure": "default_281",
  "clear_suspension": true
}

{
  "entity_id": "ent_Nq3KcAbc",
  "reason": "strategic_wind_down",
  "procedure": "default_281",
  "closures": {
    "qualifications": "all",
    "state_registrations": "all"
  }
}

FAQ

POST /v1/entities/{id}/dissolve — the underlying primitive
Lifecycle state machine — terminal-state guarantees
Authorizations — the human-signature pause model
matter_dissolve_company — the MCP tool that wraps this recipe

Dissolve an entity

Trigger

Call sequence

1. Run dissolution readiness

2. Cancel all outstanding convertibles

3. File certificate of dissolution

4. Open creditor claims window

5. Calculate §281 distribution

6. Distribute

Idempotency

Webhooks

Errors

Pre-flight readiness

Creditor claims window

§281 distribution waterfall

Error recovery

Variations

FAQ

On this page

Dissolve an entity

Trigger

Call sequence

1. Run dissolution readiness

2. Cancel all outstanding convertibles

3. File certificate of dissolution

4. Open creditor claims window

5. Calculate §281 distribution

6. Distribute

Idempotency

Webhooks

Errors

Pre-flight readiness

Creditor claims window

§281 distribution waterfall

Error recovery

Variations

FAQ

On this page

Dissolve an entity

Trigger

Call sequence

1. Run dissolution readiness

2. Cancel all outstanding convertibles

3. File certificate of dissolution

4. Open creditor claims window

5. Calculate §281 distribution

6. Distribute

Idempotency

Webhooks

Errors

Related

What is the order of operations when dissolving a Delaware C-Corp?

What does it cost to dissolve a Delaware C-Corp?

What happens to foreign qualifications during dissolution?

Why are payroll filings (941, W-2, 1099-NEC) listed as cascaded but the request body has no payroll fields?

How long does dissolution actually take?

Can I undo a dissolution?

What about creditor claims and the wind-down period?

What if I'm an AI agent dissolving a portfolio company?

What happens to a dissolved entity for the next 3 years?

How do I write off an outstanding SAFE during wind-down?

On this page

Dissolve an entity

Trigger

Call sequence

1. Run dissolution readiness

2. Cancel all outstanding convertibles

3. File certificate of dissolution

4. Open creditor claims window

5. Calculate §281 distribution

6. Distribute

Idempotency

Webhooks

Errors

Related

What is the order of operations when dissolving a Delaware C-Corp?

What does it cost to dissolve a Delaware C-Corp?

What happens to foreign qualifications during dissolution?

Why are payroll filings (941, W-2, 1099-NEC) listed as cascaded but the request body has no payroll fields?

How long does dissolution actually take?

Can I undo a dissolution?

What about creditor claims and the wind-down period?

What if I'm an AI agent dissolving a portfolio company?

What happens to a dissolved entity for the next 3 years?

How do I write off an outstanding SAFE during wind-down?

On this page