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Reasons for LLC Suspension
- An LLC may be suspended by the state for failure to file required paperwork or pay fees. Common reasons for suspension include not filing an annual report, not paying taxes, not maintaining a registered agent, or not having a valid address.
Reviving a Suspended LLC
- To revive a suspended LLC, you’ll typically need to file missing paperwork and pay outstanding fees. If you fail to revive your LLC, it may eventually be dissolved or cancelled by the state.
Dissolving an LLC
- You should file dissolution paperwork to notify the state and creditors that the LLC is no longer active. The LLC cannot take on new debts after dissolution.
Liability and Settlement after Dissolution
- LLC owners may still be liable if they personally guaranteed debts. When dissolving an LLC with outstanding debt, owners or the LLC itself may need to continue repaying loans. Assets may be used to settle remaining debts, but creditors cannot pursue former owners’ personal assets, except for personal guarantees.
Fully Closing an LLC Post-Dissolution
- Owners should distribute remaining assets, cancel licenses and permits, file final tax returns, and notify relevant agencies. This wraps up loose ends and limits further liability. Standard dissolution procedures depend on the state.
Suspension of a Business
- A suspended business cannot legally operate. To revive a suspended business, owners must file paperwork and pay fees. Failure to file paperwork and pay state fees are common reasons for suspension.
After Dissolution of an LLC
- The LLC cannot take on new debt after dissolving. Owners must file paperwork to notify the state and creditors the LLC is closing. Owners might still be liable if they personally guaranteed debts.
Closure Process of an LLC
- Owners should distribute remaining assets, cancel licenses and permits, file final tax returns, and notify agencies. This wraps up loose ends and limits further liability. Dissolution rules depend on the state.
