There’s a variety of reasons why an LLC would be considered for closure.
- Business closure
- Expiration of operating agreement
- Changing states of operation
Consider what ongoing agreements and liabilities the LLC has in place and sever as much as possible before you file a Certificate of Cancellation with the Secretary of State.
File the Certificate of Cancellation. Most jurisdictions in the US have options to submit filings directly online. The cost varies by state, but in Delaware it is $200.
Close down bank accounts. Let your bank(s) know that the business is shutting down and obtain a list of obligations that you need to fulfill so that creditors can be paid and assets can be distributed. Asset distribution details are likely explained in the LLC’s operating agreement.
Did you know that a company can go inactive by not having a designated registered agent (forfeit) or by not completing annual Secretary of State compliance (void)?