How Do I Close a Business in Wisconsin?

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Closing an LLC

When you file to dissolve your LLC in a state, it is called dissolution. The first step in shutting down a company is to decide to dissolve. Following that, you’ll need to take a few actions to get things moving, including alerting any relevant governmental bodies, filing your final tax returns, and alerting your creditors.

  • After you close your LLC in California, that LLC shall be canceled, and its powers, rights, and privileges shall end upon the filing of the Certificate of Cancellation.
  • Depending on how long you’ve been in business and whether you have the consent of all LLC members, different form(s) may be necessary.

Dissolution Process

  • Dissolution is the winding up of the affairs of the entity in advance of the termination of the entity.
  • Dissolution and Cancellation are different, where dissolution is the legal process of terminating an LLC, while cancellation occurs when a business license or permit issued by the state is revoked due to noncompliance with regulations or statutes.

Tax Implications

  • For federal income tax purposes, the consequences will depend on whether you were the only owner or if there were other owners.

Dissolving a Business in Wisconsin

Dissolving a business in Wisconsin involves several steps:

  1. Business owners must conduct a formal vote to close the business.
  2. They must settle all debts and distribute remaining assets.
  3. File Articles of Dissolution and notify government agencies about the dissolution.
  4. Cancel relevant business licenses and permits.

The timeline varies depending on the business type, debt levels, taxes owed, and how quickly paperwork gets completed. Notify several parties like the Department of Revenue, the Department of Workforce Development, lenders, and creditors. Pay legal fees if required.

Sole Proprietors and Business Dissolution

  • Sole proprietors can decide independently to dissolve a business.
  • Partnerships and LLCs require proper consent first. Review incorporation by-laws to ensure the correct process. Consider consulting an attorney for guidance.

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