Texas requires a multi-step process to dissolve a Limited Liability Company (LLC). This ensures all legal and financial responsibilities are settled before formally ending the business.
Legal Steps and Costs
To dissolve an LLC in Texas, follow these steps:
- Member Vote: All the LLC members must vote in favor of the dissolution.
- Close Accounts: Settle all outstanding accounts and pay any owed taxes.
- Certificate of Account Status: Acquire this certificate from the state Comptroller’s office.
- Certificate of Termination: File this with the Secretary of State and attach the Account Status certificate.
The process is completed in approximately 2-3 months, but this can vary depending on the business’s complexity. The state charges a $40 filing fee for LLC dissolution. After the process is completed, the business name becomes available for others to use.
Reasoning and Duration
Common reasons for dissolving an LLC include:
- Ending the business operations
- Completing its intended purpose
- Starting a new business entity
The filing process with the Secretary of State generally takes 3-5 days, while obtaining the Certificate of Account Status from the Comptroller is the longest step, taking 4-6 weeks.
Summary
Dissolving an LLC in Texas is a process that involves both state filings and adherence to the company’s internal dissolution procedures, such as financial reconciliations and asset distribution. Once the LLC is dissolved, it ceases to exist as a legal entity and its name becomes available for reuse.