My business has already shut down, do I still need to respond to this lawsuit?

Yes, closing or dissolving your business does not make an existing or pending lawsuit disappear. A dissolved California business entity can still legally be sued and can still have a valid default judgment entered against it if nobody responds, and that judgment can create real, ongoing problems, including potential exposure for money or assets that were already distributed to owners or members before creditors like the plaintiff were paid off.

Additionally, liability from an unresolved dispute involving a closed business can sometimes follow into a successor business, a new entity that effectively continues the same operations, particularly where the closure and reopening looks designed to avoid existing obligations. Simply closing the business's doors and assuming the legal matter closes along with it is a genuine and fairly common mistake that can leave you personally exposed later.