To dissolve your LLC in Michigan, submit a completed Michigan Certificate of Dissolution form to the Department Licensing and Regulatory Affairs (LARA) by mail or in person.
If you have a Michigan LLC that you want to shut down, your Michigan business will have to pay outstanding taxes and business debts if it’s not in good standing with the Michigan Secretary of State. Your LLC will also need to obtain a tax clearance certificate by submitting a tax clearance request form to the Department of Treasury.
The official way to shut down a domestic Michigan LLC is by dissolving it. All the filings need to be meticulous and it’s key to figure out whether any liabilities need to be settled. This requires interacting with several departments and can divert your attention from focusing on your next steps.
Legal Closure and Record Maintenance
Before dissolving your Michigan LLC, settle any debts and get a tax clearance certificate. Ensure your LLC pays outstanding taxes and business debts to regain good standing with the state. Obtain a tax clearance certificate by sending a request to the Department of Treasury.
Retain records for 7 years as statutes of limitation recommend. Destroy records thereafter to protect personal information. Come to terms with ending your business dream and recall successes met as you move onto new visions.
Bank and Tax Considerations
Close associated bank accounts. Revoke licenses and permissions required for the business. Submit IRS form 966 to close federal tax accounts.
Follow operating agreements when dissolving an LLC. Document member assent before starting legal paperwork. Confirm all members agree to close and then vote in favor of the dissolution.
To legally dissolve a Michigan LLC, submit an Article of Dissolution to the Secretary of State. The typical cost is around $4,000.
Although there is no penalty, still file for a tax clearance certificate within 60 days to avoid future hassle.