how to close out llc in texas [Last Infos]

Last updated : Aug 14, 2022

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hey guys this is robert with malawi law we help entrepreneurs just like you start their businesses without dealing with the complicated legal forms and we are also the number one highest rated business law firm for entrepreneurs with more than fifteen hundred five star google reviews today we are going to talk about whether you should dissolve your llc if you are no longer using it and whether you can put your llc on hold to avoid paying fees so many of our clients formed llc's in the past and they no longer use them and they wonder if they should dissolve it or not they also realize that they have been getting notices from the state informing them that they owe money despite the llc making no money or even operating at all and for our clients they're wondering if they have to pay these fees or the money to the state so in this video i'm going to address both of these questions so let's get started also keep in mind that unlike sole proprietorships where p where there is not a whole lot you have to do to wind up the business or close the business with llc that's a little bit more complicated and you'll likely have to file some documents with your secretary of state so first let me inform you that dissolving your business is another name for closing or shutting down your business so to begin or so to begin let me explain that one of the common reasons people choose to dissolve their llc's when they are no longer conducting business is to avoid paying the annual state renewal fees to keep the llc active if your llc is no longer conducting business then you can't just simply do nothing and you can't just not pay the state the annual fees if you do do this then the state may continue to charge you the annual fees and may even charge you interest on certain fees that they have not been paid eventually the state will also suspend your llc and you will continue to rack up these fees and once this happens then the state will not let you officially dissolve the llc until all taxes and fees have been paid so in reality you will just continue to incur the annual state fees until you pay the state what it is owed and properly dissolve the llc for example some states such as delaware will charge you a 200 late fee and will also charge you interest if you don't pay the franchise tax fee so in order to avoid these late fees and penalties and potentially the interest fees then it is important to officially dissolve your llc the right way and in accordance with your state's requirements so ultimately there is no need to be alarmed if your llc has been inactive but be sure to not wait too long to dissolve it otherwise you risk having to pay hefty fees to your state of incorporation so now you're probably wondering how to properly dissolve your llc and generally dissolving your business just involves filing a form to the business division of your state's secretary of state's office the state may also require that you pay the state fee and send payments along with the dissolution documents for some states there is no charge and for others the fee can be hundreds of dollars it is important to check with the business division at your secretary of state's office to find out the exact procedure so overall don't get too overwhelmed if you're in this situation but keep in mind that you shouldn't wait too long if you are no longer using your llc then it is important to dissolve it so that you can avoid getting hit with many of the fees and potential interest payments also some states won't let you officially dissolve the llc until you pay everything that is owed to them so it is important to not just let your llc incur fees each year because eventually the state will try to collect the money from you so if you're an entrepreneur looking to dissolve your business or start a business in the united states then click on the link below to schedule a free consultation with us during the phone call we will be able to determine your specific requirements to dissolve the llc in your state and we will explain the advantages of doing so and we can also determine if you should keep your llc opened and just use it for a different business purpose so go ahead and click the link below and also if you have any questions just post them below and my team and i will try to get to them as soon as possible i'll see you guys in the next video

Thanks for your comment Sparkle Farlow, have a nice day.
- Lonnie Teichmiller, Staff Member

well hello everyone ashanti titus here with profit mode financial services and today i want to talk to you about dissolving or terminating your domestic entity your llc or your corporation in the state of texas there are a number of steps that you need to take in order to do this appropriately and effectively this will ensure that you're not accruing any fees or anything like that leaving yourself you know vulnerable to liens and additional charges so let's go ahead and jump right into it here i prepared um a little presentation or step-by-step kind of guide for you so we're gonna get into it here so the first thing that you need to do um in order to you know dissolve or terminate your energy entity is that you need to file all of your past franchise um taxes so any forms franchise forms that you have not completed make sure that you get those done and filed and this also includes paying for any late charges or anything like that the next thing you want to do is if your entity had any sales tax that was due make sure you file the sales tax whether it's um you know past multiple quarterly filings that needed to be done or monthly ones you want to catch all those up and pay for those late fees or see if you can get those waived okay so that's the next step and then the next thing you want to do is you want to file the final franchise tax form once that is done you're going to request your certificate of account status when you have and when you do that you request your certificate for account status from the comptroller's office and right after that you're going to once you get that from the comptroller you are going to file a certificate of termination with the secretary of state so when you file that that's a forty dollar fee that you have to pay along with the termination so in the state of texas there's something that's called the wind up process essentially you know the wind-up process is making sure that you don't have any outstanding debts or anything like that in relation to like having a partnership and making sure that the partner and you agree on certain things when it comes to closing down the business and dissolving the entity so all the liabilities need to be paid all of the filings need to be filed and paid and then you also have a number of certificates that you have to fill out and get those things done all right and so the last and final thing here so if you have any questions or anything like that please feel free to email me my email is ashanti at profitdashmode.com we're here for you a lot of people you know um have different situations where they may have started an entity but they decided that you know they no longer want to pursue that particular business um you know a lot of cases people start a company and then they abandon it they go back to work or they move to another state and they no longer will be doing business in the state of texas so go ahead and give us a call so we can help you to dissolve to terminate your llc or corporation that was based in texas all right hopefully this video was helpful for you i'll have some more follow-up videos to show you exactly you know where to go and what the certificates look like all right y'all have a wonderful week and you're going to stay profitable and stay great

Thanks Toni your participation is very much appreciated
- Lonnie Teichmiller

About the author

Lonnie Teichmiller

I've studied prehistoric archaeology at University of California, San Francisco in San Francisco and I am an expert in object database. I usually feel ashamed. My previous job was mechanical inspector I held this position for 14 years, I love talking about leather crafting and furniture building. Huge fan of George Michael I practice golf and collect barbie dolls.