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At some point you may choose to dissolve your LLC business to put up another company. Closing an LLC is not just a matter of hanging the "We've Gone out of Business" sign on your shop front. There's more to it than that, but dissolving an LLC is not as difficult as you might think it is. Dissolution essentially involves disposing of all the debts and assets of the company, paying the shareholders and terminating the company completely.

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  • Step 1


    File the Articles of Dissolution. To dissolve an LLC, you will need to file a Certificate of Dissolution with the Department of Revenue or Secretary of State. You can download this form through your state website. You may have to pay a small fee in order to obtain this document.





  • Step 2


    Go over the company's debts and liabilities. Before you can close an LLC completely, you need to pay off its existing debts. This covers liabilities to vendors, employees and any other outstanding loans made in its name. You should consult with a lawyer if the company does not have enough assets to pay off its debts.





  • Step 3


    Send notifications of the dissolution to clients and vendors. Your clients and suppliers will need to be given notice that you're closing shop. Formal letters stating such should be sent as soon as possible to allow clients time to move their transactions elsewhere.





  • Step 4


    Return the cash reserves to owners. All the named owners of the LLC will also need to get their investments before you close the business down. If the company doesn't have enough money for this, work with a lawyer to draft an agreement on how the remaining money will be divided. You may also need to work with the investors on a time frame for returning their money.





  • Step 5


    Shut down your Employer Identification Number with the IRS. This serves to notify the tax agency that your LLC will no longer operate. You can close your EIN through the IRS website.





  • Step 6


    Cancel your business licenses. You will need to contact the local licensing bureaus to cancel your business license. Simply letting the license expire will still get you assessed for taxes and other fees long after your business ceases to operate.





  • Step 7


    Report final paychecks and pension plan funds with the IRS. You will also need to report disposing of all business property and any other pertinent information related to shutting down your company. Go over the IRS checklist for closing your business.




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