Steps to Dissolve a Business in Colorado
To legally end a business’s existence in Colorado, file dissolution documents and pay a $25 fee. Follow these steps:
- Decide to close the business. File dissolution documents with the Secretary of State.
- Cancel registrations, permits, licenses, and business names no longer needed.
- Deal with any outstanding contractual obligations.
- For corporations, file Articles of Dissolution containing:
- The address of the primary office
- A declaration that the corporation has dissolved.
- Articles can be submitted online.
- Pay any remaining debts. Terminate accounts.
Dissolving a business can be complex, but with guidance, it can be done smoothly. The time needed varies depending on required actions like holding meetings, closing accounts, and distributing assets. Once initial steps are done, the Secretary of State usually processes the Statement of Dissolution in 1-2 days.
Cost and Timeframe
How much does it cost to dissolve a business in Colorado?
To dissolve your Limited Liability Company in Colorado, there is a $25 filing fee required.
How long does it take to dissolve a Colorado LLC?
Documents submitted online are filed in real-time. Therefore, your dissolution takes effect immediately after your payment is confirmed unless you specify a later dissolution date.
The Closing Process
Understanding the cost associated with this process is an essential step towards successfully winding down your business. Before your LLC is officially dissolved by the Colorado State government, you should first settle all fines owed and pay off taxes required with all your business tax accounts.
To dissolve an LLC in Colorado, follow these three steps according to the Operating Agreement:
- Follow Your Colorado LLC Operating Agreement. For most LLCs, the steps for dissolution will be outlined in the operating agreement.
- Close Your Business Tax Accounts.
- File Articles of Dissolution.
Dissolution is the process of ending a business in Colorado voluntarily, while bankruptcy is a legal process to allow individuals or businesses in Colorado to discharge or restructure their debts.
Official Forms and Considerations
All articles of dissolution must be submitted online using the state’s online filing system, which is accessible from any computer with internet access.
What is a Colorado address change or business closure form?
Instructions for completing the Address Change or Business Closure Form:
In order to notify the department of name/address changes or to tell the department that you are no longer due for Colorado sales tax, withholding tax, or retailer’s use tax, the address change or closure form must be completed and submitted.
Dissolving a business requires specific steps and regulations to complete the process correctly and legally. This comprehensive guide is designed to help you dissolve your business in Colorado smoothly. You must be guided by all the factors gathered in this article.