How Do I Close an LLC in California?

Closing an LLC in California

  • Dissolving an LLC in California

    • You must file a certificate of dissolution with the state to close your LLC. This requires finding the right form, filling it out online, and submitting it.
    • Every LLC in California must pay an $800 annual tax, even if not conducting business, until you cancel your LLC.
  • Steps to Terminate an LLC in California

    • Members vote to dissolve, file a final tax return, and file an Article of Dissolution.
    • The Secretary of State (SOS) and Franchise Tax Board (FTB) have requirements LLCs must meet before ceasing to exist.
    • The LLC will wind up affairs, notify creditors it no longer operates.
    • There is no fee to file the dissolution forms online. Expedited service is available for an additional fee.
  • Termination Procedures and Requirements

    • Follow the process required by the jurisdiction where it is registered.
    • Steps include: filing articles of dissolution, meeting tax and filing requirements, handling legal and financial obligations, and disposing of assets.

Closing Procedures and FAQs

  • Can I abandon an LLC in California?

    • No, abandonment of an LLC is not allowed in California.
  • Cancellation of an LLC in California

    • Legal steps and requirements to cancel an LLC in California.
  • Differences Between Dissolution and Termination of LLC in California

    • Dissolution is a prerequisite for termination.
  • Closing a Single-Member LLC in California

    • The process for sole members of an LLC in California to dissolve it.
  • Inactivity and Tax Obligations

    • LLCs that have become inactive or have no income may still be mandated to file a federal income tax return.
  • FAQs on Dissolving an LLC in California

    • Frequently asked questions on how to dissolve an LLC in California.

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