Dissolving an LLC starts the process of closing a business. Dissolution does not mean the business is terminated. 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.
The Process of Dissolution
When you file to dissolve your LLC in a state, it is called dissolution. On the other hand, it is termed as termination when the state cancels or terminates your company from the state. For federal income tax purposes, the consequences will depend on whether you were the only owner or if there were other owners.
Steps to Dissolve an LLC in California
In California, there are three methods to dissolve an LLC. Depending on how long you’ve been in business and whether you have the consent of all LLC members, different form(s) may be necessary. You’ll need to take a few actions to get things moving, including:
- Alerting any relevant governmental bodies
- Filing your final tax returns
- Alerting your creditors
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.
Dissolving an LLC in Wisconsin
Dissolving an LLC in Wisconsin starts when an event triggers the need to dissolve or the need for the LLC to stop operating, according to the operating agreement. After you file the necessary forms and the Certificate of Cancellation, the LLC is dissolved and can no longer conduct business.
In Wisconsin, there are also three methods to dissolve an LLC. The required form(s) may vary depending on the duration of the business and the consensus among LLC members. The steps involved in this process are similar to California, where you must:
- Notify the appropriate governmental entities
- Submit your final tax returns
- Inform your creditors
FAQ: What form do I need to dissolve an LLC in Wisconsin?
To dissolve an LLC in Wisconsin, you will need to file the required form(s) specific to the method you choose based on the conditions of your LLC.