Businesses decide to close permanently for a wide range of reasons. From owner retirement to limited cash flow or disagreements between members, the list goes on.
Simply locking the doors and taking the sign down isn’t enough. You need to take specific steps to dissolve your LLC officially.
Depending on the circumstances of your dissolution, you might not be thrilled about having to file extra paperwork and wrap things up appropriately. But taking the time to dissolve an LLC the right way will help limit your liability down the road and ultimately make it easier to move forward with future ventures.
Think back to when you formed your LLC. Remember all of the paperwork you had to file with the state, IRS, and local agencies? Unless those authorities are told otherwise, they’ll assume you’re still an active business, required to file annual reports, pay taxes, and pay yearly fees.
These requirements end when you officially dissolve your LLC.
Regardless of your situation, this can be challenging for business owners, especially those who have never been through this process before. Follow this guide for detailed instructions on how to formally dissolve your LLC.
Types of LLC Dissolution
LLC dissolutions typically fall into one of three categories—voluntary, administrative, and judicial.
Voluntary LLC Dissolution — Voluntary dissolution occurs when the LLC members willingly decide to close the business. It can happen as… Read More