Steps to Dissolve an LLC in Texas
- **Voting to dissolve the LLC with the business members.
- **Acquiring a Certificate of Account Status from the state.
- **Filing a Certificate of Termination with the Secretary of State.
- **Closing accounts and paying taxes that are owed.
- **Notifying relevant third parties like government agencies and other creditors.
- **Distributing company assets according to the operating agreement, if one exists.
Reasons for Dissolving an LLC
- Ending the business
- Completing its purpose
- Wanting to start a new business entity
Summary: Properly Dissolving an LLC in Texas
Properly dissolving an LLC requires both state filings and internal company procedures.
Timeline for Dissolving an LLC in Texas
The whole process generally takes around 2-3 months but can be longer depending on the complexity of the case.
Determining the Filing Entity and Forms
Determine whether your LLC in Texas is foreign or domestic as this impacts the filing entity and forms needed.
Closing an LLC in Texas for Free
To dissolve an LLC in Texas for free, submit the completed Certificate of Termination of a Domestic Entity (Form 651) to the Secretary of State along with a certificate of account status from the Texas Comptroller’s Office.
Importance of Proper Dissolution
Failing to shut down an LLC properly can result in major liability problems.
Closing an LLC in Texas
The process of closing or dissolving your LLC in Texas has become easier with digital systems. Remember to file articles of dissolution with the Texas Secretary of State.
Steps for Dissolution of Texas LLC
- Follow your Texas LLC Operating Agreement.
- Close all the tax accounts.
- Submit the Articles of Dissolution form to the Texas Secretary of State.