Deciding to Dissolve
The first step is deciding to close the business. Also file paperwork on the dissolution.
Vote to end the LLC. Next, alert relevant groups. File last returns. Report dissolution to state. Distribute leftover assets. Lastly, close accounts.
Closing Procedures for an LLC
How do you close an LLC?
- Vote to Dissolve the LLC
- Notify Creditors About Your LLC’s Dissolution
- File Final Tax Returns and Obtain Tax Clearance
- File Articles or Certificate of Dissolution
- Distribute Assets
- Close All Accounts and Cancel Licenses and Permits
The next step is to settle debts. This involves reviewing records, contacting creditors, and paying or negotiating balances. Liquidating assets happens after settling debts. Closing business accounts finishes dissolving an LLC.
How long does it take to dissolve an LLC in Maryland? It normally takes up to 8 weeks to process a dissolution filing. By paying the $50 expedited fee, you can get your application processed within 7 business days.
Can I dissolve my LLC without notifying my members in Maryland? If you have multiple members, a vote will be required to approve dissolution based on the operating agreement procedure.
To officially dissolve your Maryland LLC:
- Vote to Dissolve the LLC
- Notify Creditors
- File Final Tax Returns
- File Articles of Dissolution
- Distribute Assets
- Close Accounts and Cancel Licenses/Permits
Tax and Filing Considerations
Although the state doesn’t require tax clearance before dissolving your LLC, it’s important to resolve outstanding tax and financial obligations before filing the Certificate of Dissolution.
To close your Maryland LLC:
- Comply with the Operating Agreement terms
- Close Your Commercial Tax Accounts
- Submit the Articles of Dissolution
Filing fees: The filing fee for Articles of Dissolution in Maryland is $100.
What happens to EIN when LLC is dissolved? Members vote on voluntarily dissolving. This decision means closing down.