What You Need to Know About Properly Dissolving your LLC.
Don’t let an improperly dissolved LLC cause you legal trouble.
Starting a business is one of the most exciting adventures any person can embark on. However, as businesses grow, their owners might need to dissolve them for various reasons. Dissolving your LLC can be a complex process, and it’s important to take the right steps to ensure that your company is dissolved legally and without any negative consequences. If you’re considering dissolving your LLC, this guide will provide you with the information you need to get started. Dissolving your LLC properly is a critical step to ensure you do not become personally liable for the debts or liabilities of the LLC. If you do not follow all the proper steps to dissolving a LLC, you run the risk of incurring significant tax and other penalties, even when you had no income and no tax due! For example, did you know that for each month or portion of a month your IRS federal tax return is late, you are penalized $195, for a maximum of 12 months multiplied by the number of managing members?
Reasons to Dissolve Your LLC
Business owners may choose to dissolve their LLC for various reasons such as changes in the business climate, different business interests, or financial difficulties. Before dissolving your LLC, you should evaluate your business’s current state and ensure that your reasons are legitimate. Once you’ve determined that it’s the right decision, the following steps can guide you through the process.
Consider Legal Assistance
Dissolving an LLC can be a complicated process that varies depending on the state where your company was formed. While some states require filing a simple form, others require more paperwork and legal procedures. Hiring a lawyer can help you navigate these complexities and make sure you’re complying with all the necessary laws and regulations.
Notify the Members and Creditors
Once you’ve decided to dissolve your LLC, you should notify all the LLC’s members, including those who have purchased units, of your decision to dissolve the business. It’s also essential to inform any creditors and debtors that your company incurs. Creditors have the right to claim payment for anything owed, and informing them will protect your business’s assets. You should initiate the dissolution process immediately after the owners, members, or managers have decided to close or dissolve the company. You definitely don’t want to wait too long, especially if you’re approaching year’s end (to avoid having to submit next year’s taxes) or if you have disputes or debates among the owners.
Pay off Any Debts
After informing your creditors and debtors, you should pay off any outstanding debts and obligations the LLC incurs. If you’re unable to pay these debts in full, you should create a payment plan and adhere to it as closely as possible. Failing to pay off debts and obligations could lead to legal action against your LLC.
File Articles of Dissolution
Finally, after you have paid off your outstanding debts and notified all members and creditors, We can help you file the Articles of Dissolution. This form officially dissolves your LLC and notifies the state that your business has closed. The requirements to file this form vary depending on the state your business was formed in. Our affordable flat-rate pricing makes it easy to dissolve your LLC online in minutes, with an offering that is customized for the unique requirements of you and your LLC. Fill out our short dissolution questionnaire and our experienced staff of attorneys and paralegals will handle the rest. We ensure that your business is formally closed in an accurate, and efficient manner.
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