LLC-Explained.com
Information about LLC's in various states and countries.
Dissolving an llc
Whether you run into money trouble, or your attention turns elsewhere, dissolving an llc can seem like a complicated procedure if you don't know where to start. There are a number of specific forms that you will need to fill out, but it's not incredibly hard to get things straightened around.
Depending on the reason that you wish to start dissolving an LLC, you will need to first figure out how much each individual person's stake in the LLC is, and also to determine the LLC's assets. If you are the only person in your LLC, then there is a number of steps that you need to finish to completely dissolve your LLC.
These steps do not need to be completely in any particular order, but they must all be completed in order to avoid any type of personal liability. Formal corporate action, filing IRS form 966, a number of filings to your state office (the exact paperwork that is required to be sent in varies by state), sending out a notice to any creditors that gives information on where to send their claims to, as well as processing all creditor claims, and finally the liquidation of LLC assets. This is all considering that you have no opposition to dissolving the LLC.
If you are having problems with other partners or members in your business, you are in for a much more complicated process. Dissolving an llc in this case often requires going to court, unless you can get two thirds of your shareholders to approve the action. If you do, you will go through the normal steps to dissolve the LLC. If not, you will need to petition to your state court system and try to get a court order to dissolve the LLC.
When you go to court, you will need to be very careful when dissolving an LLC. It will take time and money, and you might possibly still have to split the LLC assets with problematic partners. You can also either offer to buy their interest in the LLC or offer your own interest in the business up for sale. That just all depends on whether you want to keep the business alive or not.
