The decision to quit a venture is never an easy one for an entrepreneur. When the decision is driven by financial reasons, as is often the case in a troubled economy, it can be tempting to simply walk away under the rationale that no new business means the business is dead. The excitement of new projects or the appeal of a fresh start under a new name can overshadow the headaches associated with a failing business. But as cases like Emily Lane Homeowners Association v. Colonial Development, LLC show, maintaining the shell of a company is an all-too-convenient move that leaves owners vulnerable to lawsuits and liability. The failure to properly wind up affairs may lead to a variety of repercussions.

Choosing a business structure is a decision that should be made on the basis of a variety of considerations, including the present and future needs of an organization. There are no one-size-fits-all solutions in this area, since all business structures are associated with unique advantages and limitations. It is advisable to compare and contrast the attributes that are important to your organization and to choose accordingly with the knowledge that the decision, while not permanent, may have long-term ramifications.