Dissolving an LLC

If you've reached the point where it's time to close shop and shut down operations, you'll need to learn the rules about going out of business. The process of closing your business involves legally dissolving your LLC and winding up your affairs. Going through each step carefully will help ensure you don't end up with any personal liability for your business.

Dissolving your LLC includes internally approving the dissolution—you and the other LLC members will probably need to vote on the dissolution. You'll also need to file official paperwork with your state, usually called "Articles of Dissolution," to legally dissolve your LLC with the state. Some states require LLCs to publish notice of their dissolution in a local newspaper or to file multiple forms with the secretary of state's office.

Winding up your business includes notifying creditors, customers, business associates, and others of your LLC's closure. You'll need to pay off any outstanding debt, finish up or assign remaining obligations, and settle any other accounts. Don't forget to cancel licenses, close tax accounts, and end out-of-state registrations. At the end of the process, your LLC will legally be dissolved.