Steps On How To Dissolve Your LLC Or Corporation

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How to Dissolve an LLC

A corporation or LLC can come to a place of dissolution for several reasons. It can simply be a decision you've made for your company because it is no longer successful, you are moving on to a new adventure or your shareholders wish to dissolve its assets. This will, fortunately, stop the necessary tax filings and other requirements that come with having a record of operation on file with the secretary of state. But, the emotional decision to dissolve your company can be tough at times, if you put your heart and sweat into building your own business.

Allow Bizee.com to ease the burden by doing the dissolution paperwork for you.

How to Close an LLC or Corporation

A company begins with Articles of Incorporation when it is formed, therefore it makes sense that Articles must be filed to dissolve a company that has been in operation. Without filing the proper paperwork, the business owner will continue to be liable for taxes and other state requirements. Fortunately, closing a company is really a matter of paperwork.

In order to properly close a corporation or LLC that is no longer transacting business, the company must file Articles of Dissolution with the state of incorporation. Neglecting to file Articles of Dissolution for a company that is no longer active may expose the corporation or LLC to unnecessary recurring fees or taxes.

Business dissolution is primarily an act of filing Articles of Dissolution with your secretary of state. However, if a business is not in a sound position with the state to dissolve, other legal matters may complicate the process.

Steps to Dissolving Your LLC or Corporation

There are three key steps to dissolving a company. Bizee completes these steps in a timely manner on your behalf, making an otherwise cumbersome process simple and stress-free.

Hold a meeting with the Board of Directors

In this case, you want the minutes of your meeting to reflect that a vote was taken and appropriate majority (as outlined in your incorporation papers) was achieved. Those companies with shareholders will want a written documentation of this decision signed by all company owners. Some companies, such as single-member LLCs will not need to complete this step.

File the Articles of Dissolution

Next, your company will need an Assumed Name under which to register, or you can incorporate your business and use your formal name.

Notify the IRS

Then, if you operate from home or plan to remodel a space, for example, you'll need to obtain permits to do so. Other permits covering serving alcohol, displaying a sign on the building exterior and even parking for your business might also be a requirement. A great place to research your local zoning and operating laws is the nearest Small Business Development Center (SBDC).

An additional step often recommended at this point is the closing of all credit lines and accounts that pertain to your business. Letting your creditors know that you have dissolved a company will set you up for more favorable circumstances should debt still be present. Finally, if you have any fictitious names in other states, you'll want to cancel those as well.

Save your time. We'll handle the paperwork.

Requirements to file Articles of Dissolution:

The company must be in good standing with the state of incorporation and cannot be in arrears of franchise taxes or annual reporting requirements. In the event that the entity is not in good standing reinstatement would be required in order to proceed with the dissolution.

Common Questions on Filing Dissolution

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