ARTICLES OF DISSOLUTION
If you made a decision to close your corporation or an LLC you are required to file the Articles of Dissolution with the state. Filing the Articles of Dissolution will inform the state that your business is no longer operating, so the state does not require you to pay fees and taxes. Until you formally file for Articles of Dissolution the state will think that you are still in business and will charge you with late fees, license fees, etc. It is your responsibility as a business owner to notify the state of the closure.
What do I need to do to close my business?
Depending on the nature and the location of your business, steps for business dissolution may vary. However, most business will need to get approval from the owners, members, and shareholders of a corporation or LLC to become officially dissolved.
If you have a corporation, the shareholders must approve the dissolution; and if your business was registered as an LLC, members grant the dissolution approval. To get approval for dissolution, the company should hold a meeting where all business partners and Board of Directors can vote on closing the business. The vote must be officially recorded. With this official record of approval, you can file with the state for the dissolution of your business.
Filing federal, state, and local tax return forms
To finalize your tax payments when you close your business, there is no need to wait until the tax filing deadline. You can file your last taxes with the IRS at any time. When you fill out the forms make sure you check the “final return” box when filling out your tax forms so the IRS knows you won’t be filing future returns. It is important to remember to pay any outstanding taxes, including payroll, income, and sales.
Cancel business permits and licenses
To avoid being charged with license renewal and other government fees, you will need to let your state government know that you have closed your business. Remember to notify of your business closure all government authorities that have records of your business, including at the state, county, and city levels. If your business was operating in different states remember to also withdraw from states where foreign qualified.
Wrap up your business affairs. This includes notifying your customers, vendors, landlords, and suppliers of your business closure, and settling all outstanding invoices and debts.
Frequently asked questions about business dissolution
What needs to be done when a corporation or LLC stops operating?
Generally, if a corporation or an LLC closes, it is responsible for filing the Articles of Dissolution and other paperwork with the State.
What happens if I don’t file the Articles of Dissolution?
If you closed your business but did not file the Articles of Dissolution, the state will think that you are still operating and therefore, responsible for filing annual license renewal fees, paying taxes, and other fees.
How do I dissolve a corporation or LLC?
A legal filing is required to officially dissolve a corporation or an LLC. You must file the Articles of Dissolution or Certificate of Termination with the Office of the Secretary of State where you registered your business.
What if I want to close my company but it owes back taxes?
Most states require that a company that files for the Articles of Dissolution is in good standing at the time of closing. They will not allow you to close your business until it is in good standing and pays all back taxes and fees.
Can BizStarter help dissolve my corporation or LLC?
Yes, we can. BizStarter has been assisting business owners with applications for the Articles of Dissolution, Certificate of Good Standing, Apostille and authentication services, and much more since 2016. We can file all the necessary paperwork on behalf of your business for a minimal processing fee. By trusting BizStarter with your business compliance paperwork you will save your money, time, and peace of mind. The standard processing time for the Articles of Dissolution is 2 to 4 weeks, depending on the state your company is registered in. Expedited processing (1 to 2 weeks) is also available for an extra fee.