1. Maintain your business credibility:
Many corporate applications including insurance/bond, government contracts, lease/rental agreements, or applications for public/corporate positions include a question such as: “Have you ever been an officer of a company that had its charter revoked? If so explain.” This embarrassing situation can be simply avoided by completing the formal dissolution process.

2. Limit your personal liability:
If a company’s charter is revoked it loses its right to do business within state, or bring any suit. It also enables creditors to pierce the corporate veil, since the company can no longer be sued the creditors’ only recourse is against officers, stockholders and members. However, if a company is formally dissolved then the directors or managers are able to act as trustees of the corporate assets and can defend a corporation against such suits, thereby eliminating personal liability.