- 1). Tally the votes of all LLC members, who must vote unanimously in favor of ending the company, if it isn't automatically dissolved upon the death or withdrawal of a member. As explained on the Legal Match website, if every LLC member willfully terminates their relationship with the company, then the LLC may begin dissolution procedures.
- 2). Obtain articles of dissolution from the state where the LLC was organized. Many states provide fill-in-the-blank articles of dissolution that may be downloaded from the Secretary of State's website. In other instances, request articles of dissolution by mail, phone or in person.
- 3). Prepare and submit articles of dissolution. Provide information such as the name of the LLC, its members and the reason for dissolving the LLC, as stated on the Legal Match website. Indicate an effective dissolution date, as well as information regarding pending lawsuits and other obligations. Depending on the state of organization, an LLC may submit articles of dissolution by mail or in person at the Secretary of State's office. Some states may allow an LLC to submit articles of dissolution electronically on the Secretary of State's website. The fee to file will vary from state to state.
- 4). Submit notification to creditors. An LLC must notify its creditors that the company is ending. Provide an address where LLC creditors may submit their claims. Generally, they may be given 120 days to submit a claim, which the LLC has the ability to accept or reject. LLC assets are used to pay off accepted claims from creditors.
- 5). File Form 966 with the Internal Revenue Service, according to the Residual-Rewards website. Form 966 is a liquidation and dissolution form that formally dissolves the LLC with the IRS. After a formal plan to dissolve the LLC has been adopted, an LLC has 30 days to file Form 966. Provide information such as the name and principal location of the LLC and dissolution date, as well as the company's federal tax ID number. Attach a copy of the LLC's articles of dissolution that you received from the state where it was formed. Mail Form 966 to the same IRS branch where the company files its business taxes.
- 6). Divide any remaining company assets. The LLC's remaining assets, after all creditors and other obligations are paid, are divided according to the member's ownership interest in the business. As explained on the Legal Match website, it's rare for LLC members to ask a judge to distribute company assets because the LLC members are aware of their financial contribution to the business.
Source...