---
title: How do I dissolve my LLC or Corporation?
description: "There are two types of dissolution, Administrative Dissolution and Formal Dissolution. Administrative Dissolution Costs: $0 Dollars You cannot re-open your company until you pay all fees that are owed"
---
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# How do I dissolve my LLC or Corporation?
There are two ways to dissolve your company: **Formal Dissolution** and **Administrative Dissolution**.
- **Formal Dissolution** occurs when you voluntarily notify the state that you are no longer operating the business. This involves filing the appropriate paperwork and officially closing the company in good standing.
- **Administrative Dissolution** is initiated by the state—typically because required filings or fees (like annual reports or franchise taxes) were not submitted on time. In this case, the state will automatically dissolve the business due to noncompliance.
We always recommend that you formally dissolve your company. Allowing a state to administratively dissolve a business can lead to complications if you decide to reopen it in the future. These issues may include fines, late fees, and in some cases, the inability to reinstate or reuse the business name.
Taking the time to properly dissolve your company helps avoid unnecessary penalties and ensures a clean break with the state.
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