Process of Dissolving an LLC
In California, there are three methods to dissolve an LLC. The first step in shutting down a company is to decide to dissolve. Following that, you’ll need to take a few actions to get things moving, including alerting any relevant governmental bodies, filing your final tax returns, and alerting your creditors.
Difference Between Dissolution and Cancellation
Dissolution is the winding up of the affairs of the entity in advance of the termination of the entity. While both steps are required, they are not the same thing. Dissolution and Cancellation are different. Dissolution is the legal process of terminating an LLC, while cancellation occurs when a business license or permit issued by the state is revoked because of noncompliance with regulations or statutes.
Closing an LLC in California
After you close your LLC in California, that LLC shall be canceled, and its powers, rights, and privileges shall end upon the filing of the Certificate of Cancellation. This means you can no longer conduct business using that LLC.