Dissolution of an LLC

Dissolution of an LLC happens when its business purpose ends or is no longer profitable. Dissolution leads to assets being sold and shareholders paid.

• To dissolve, members vote to stop the company. The liquidator files paperwork like minutes of the meeting, appointment documents, and a dissolution statement. Most states require filing forms to officially dissolve. Follow state laws and operating agreement for voluntary dissolution. Record the decision, file a final tax return, notify state authorities to formally wind up an LLC.

Reasons for Dissolution

Reasons for dissolution are ending the company purpose, paying all debts and closing up, partners disagreeing on decisions, business becoming unprofitable over 2 years, or disagreements between partners.

• File articles of dissolution, pay a fee, file a final tax return, and notify relevant authorities. The state may dissolve an LLC administratively for not paying taxes and fees, not filing reports, or lacking a registered agent. Members can also sue for judicial dissolution and asset distribution.