question.jpgIn Business Law

How do I end an LLC?

LLCs are generally ended by dissolution, where the company closes its doors, pays off its creditors, sells or it remaining assets and resolves any other remaining issues. Dissolution can be voluntary or involuntary. Voluntary dissolution would be where the members or managers decide, on their own, to dissolve the company. Involuntary dissolution is where the LLC’s existence is terminated either administratively or judicially. An administrative dissolution occurs where the secretary of state (or some other state entity in charge of overseeing LLCs) orders a company to be dissolved because it has failed to comply with the state’s mandatory filing and reporting requirements, or is somehow otherwise delinquent under state law requirements (the most common example would be where the company is delinquent with its taxes). A judicial dissolution occurs where a court orders the termination of an LLC at the request of the state attorney general, members, or creditors.