Sometimes, things don't work out as we envision. It happens to everyone, and if you decide you need to dissolve your LLC or C-Corporation, here is a guide to how and how not to do it:
There are two types of dissolution, Administrative Dissolution and Formal Dissolution.
Costs: $0 Dollars
You cannot re-open your company until you pay all fees that are owed.
Your company will show as delinquent, which will be bad for reputation if anyone inquires online about your company.
You cannot control what day your company officially closes, which puts you at the risk of breaching important due dates for which compliances will be required, again, hampering and delaying your dissolution process.
You cannot create another company with the same name, the name remains unusable for 2 years.
You could incur up to a $250 fee to get your company reinstated, on top of paying back everything you owe.
As you can see, this is an option, but there are an immense amount of downsides to having an Administrative Dissolution. You are handcuffed in terms of how you can proceed, and we do not recommend this option.
Company name can immediately be re-used if you decide you want to re-open your company.
There are no fees to re-instate your company, all you have to do is submit your new Articles of Organization.
The company is ended on a specific day you desire, so no new lawsuits can be filed against it after that day. No compliances need to be taken care of for your company beyond this date.
The company closure is clean and official with the state.
Costs: State Fees, depending on your state of incorporation.
Clearly, this is the more professional option. All that's needed is to submit an Articles of Dissolution for your company, and make the necessary efforts to pay off debts, close bank accounts, and pay members of the LLC of any profits.
Save Yourself the Hassle
Let doola handle dissolution for you. We make it easy. As a founder the last thing you want to do is spend a lot of time looking for the right person to help dissolve your company.
Other people might charge up to $1500 USD to help. Not us.