Learn something new every day
More Info... by email
When the time comes to dissolve an LLC, or limited liability company, you need to make it official by following the rules laid out by your local government. The first step is to file the necessary paperwork, called the articles of dissolution, and pay the accompanying fee. Once the request has been received by your local government, you need to tie up the loose ends, such as letting creditors know of the change. Next, you should make a list of both your assets and debts, as you need to determine how much money each member of the LLC will get when you liquidate assets, but leave enough money over to pay all debts. You also need to file a few forms for taxes, especially if you have any assets to liquidate.
The first step in the process is to file the official articles of dissolution with your local government, as this acts as the notice that you intend to dissolve an LLC. This form needs to be signed by all members, and you will likely need to a pay a small fee when filing it. The result is that your articles of organization will be considered canceled, and the LLC will no longer exist. If you had a fictitious name for your company, you are encouraged to also cancel it, along with any business permits or licenses.
You should then compile a list of all of the company's assets, including computers, office furniture, and stocks. It is also necessary to create a list of any debts that have not yet been paid, as these will need to be taken care of before divvying up the leftover funds from your business. Once you have paid all the bills, take a look at what is left, and decide how much money each member should get. The final step that involves the assets is selling them so that you can divide up the cash, which means that you should prepare to sell any property, electronics, and other valuable items once you dissolve an LLC.
One of the final steps required in order to dissolve an LLC is notifying creditors of the change. If you owe them any money, you should let them know about the termination when paying your final bill with them, and request written confirmation that all accounts be closed. You will also need to file one last tax return with the government, which should be clearly marked as the final return so that the tax agency does not expect a return the following year from your company. Finally, realize that you may need to pay taxes on any liquidated assets when you dissolve an LLC, so set aside money for this task.
One of our editors will review your suggestion and make changes if warranted. Note that depending on the number of suggestions we receive, this can take anywhere from a few hours to a few days. Thank you for helping to improve wiseGEEK!