How to Dissolve a Limited Liability Company
If you want to dissolve the LLC, there are some things that you need to consider. You will need two very important things – IRS forms and the state dissolution documents.
If you’re not the only owner, everyone should agree and sign the paperwork. Once you decide for the LLC dissolution, get legal help and follow the right procedures.
Dissolution of a Limited Liability Company
If you’re planning to dissolve an LLC or Limited Liability Company, there are some things that you need to consider. You will need two very important things – IRS forms and the state dissolution documents. A form for the dissolution can be obtained from the secretary of state and since it is very detailed, you have to ensure that everything is filled out properly. If you’re not the only owner, everyone should agree and sign the paperwork. Dissolving an LLC is tough job but if you know what to do, you can save on all the hassle.
Examine the company’s assets and if you have partners, make sure that you schedule for a meeting. There should be two separate lists for the assets and the other for debts. The assets will include everything with cash value like bonds, stocks, balances in the bank accounts, computer equipment, office furniture, and many others. During the meeting, you can now propose for the formal dissolution. As the owner, you can formally request for the dissolution. If there are parties involved, the statement should be detailed and interested parties should have copies as well. The dissolution paperwork should be filed with the concerned government agency.
Filling out the Forms for Dissolution
In most cases, the forms will consist of ten pages and is usually called ‘Limited Liability Company Certificate of Dissolution’. The forms need to be filled out thoroughly and the concerned parties should sign on the document. A processing fee should also be paid and it can range from $15 - $20. All IRS forms should be filed properly including the Form 966 or the Corporate Dissolution and Liquidation. During filing, you can incur additional income taxes so it would be best to work closely with a lawyer. By doing so, you can submit the IRS forms with ease and avoid problems.
All creditors should have your contact information. You can count on your lawyer to talk to the creditors but make a letter explaining about the dissolution. Provide for you’re the contact number so that the creditors can easily reach you. All the assets should be liquidated. Before you liquidate annuities, bonds, or stocks, you will need the assistance of your lawyer. All debts need to be paid out before owners can get their share. It would not be ideal to not settle your debts because this will only lead to more complicated problems. Once you decide for the LLC dissolution, get legal help and follow the right procedures.
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