how to end an llc in illinois [With Tutorial]

Last updated : Sept 1, 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 Marlena Curll, have a nice day.
- Lashon Fugo, Staff Member

welcome back today we're going to talk about how to dissolve or end an LLC I'm mark light--i from the light a law firm let's get started in some ways dissolving an LLC is similar to starting an LLC technically it's as simple as going on the Secretary of State's website for your state and registering a form that you can do quickly and easily online currently in Colorado the fee for that form is $25 but in addition to just simply going on and filing that form online you also need to consider all different sorts of winding up considerations for your LLC so first start with the operating agreement what is the operating agreement say about dissolution dissolving your LLC if you are a multi-member LLC meaning you have partners who has to agree to the disillusion is there a majority vote does it have to be a unanimous vote or what by default the LLC statute in Colorado says that unanimous agreement of the members of an LLC is sufficient to allow the LLC to dissolve in addition to looking at your operating agreement and making sure that you have the authority to dissolve the LLC you will also want to document any vote that occurs between members to make sure that all the members are in agreement and that it is documented so you can prove it later that everybody agreed to dissolve this LLC now winding up your LLC also includes things such as closing your bank accounts distributing all the assets of your LLC and then you have to figure out if your LLC also has outstanding liabilities are there lawsuits pending against you do you have creditors are you in debt as an LLC if so you are not required to provide a formal notice to your creditors but doing so can be prudent because it can help protect you because it starts the clock ticking for when your creditors can try to come after the LLC or potentially you for those liabilities you'll also need to take into consideration any debts the LLC has if you are distributing assets and paying out all of the former members of the LLC if there is a claim a lawsuit even a potential lawsuit against you you have to be very careful about taking or giving distributions from your LLC and taking the money out of it because you don't want it to look like you are trying to avoid judgment against you that can have serious consequences but the actual process of dissolving your LLC is super simple you check with your operating agreement to make sure you are following your own rules about how to dissolve and then you simply file a statement of dissolution on your State Secretary of State's website thanks for watching and please remember to click like and subscribe to help keep legal education free for small business owners I'm a hundred percent I'm always

Thanks Cornell your participation is very much appreciated
- Lashon Fugo

About the author

Lashon Fugo

I've studied natural resource management at Widener University in Chester and I am an expert in agricultural economics. I usually feel peaceful. My previous job was political scientist I held this position for 10 years, I love talking about bowling and knot tying. Huge fan of Rachel Crow I practice bodysurfing and collect fossils.