Closing an LLC in California
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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.
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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.
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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
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Can I abandon an LLC in California?
- No, abandonment of an LLC is not allowed in California.
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Cancellation of an LLC in California
- Legal steps and requirements to cancel an LLC in California.
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Differences Between Dissolution and Termination of LLC in California
- Dissolution is a prerequisite for termination.
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Closing a Single-Member LLC in California
- The process for sole members of an LLC in California to dissolve it.
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Inactivity and Tax Obligations
- LLCs that have become inactive or have no income may still be mandated to file a federal income tax return.
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FAQs on Dissolving an LLC in California
- Frequently asked questions on how to dissolve an LLC in California.