Just as starting a business requires careful planning, closing a business also involves important steps to ensure everything is wrapped up properly and in accordance with state regulations. Navigating this process may seem daunting, but we’re here to simplify it for you.
What is Dissolution?
Dissolution is when the members of an LLC decide to formally close the business. This process follows applicable state laws and regulations and includes closing up loose ends such as filing outstanding reports and paying any unpaid fees and fines (if any).
However, there are instances when dissolution is imposed by the state. This is known as Administrative Dissolution and can occur when a business neglects to comply with legal or financial obligations, such as failing to file an Annual Report on time. Administrative Dissolution can lead to significant legal and financial consequences, with the risk of accumulating fines and penalties over time.
Reinstating a Dissolved business
If a business owner wants to reopen their business after it’s been dissolved, reinstatement is usually possible and requires additional processing fees.
If you have an active Annual Compliance subscription with Tailor Brands, we can typically assist in reinstating your business. The process may vary depending on the state’s specific requirements and associated fees. As part of this process, our team will also review and inform you of outstanding fines or obligations that may affect reinstatement.
Tailor Brands Dissolution Service
If you formed your LLC with Tailor Brands, we offer a Dissolution service available in most states. With this service, you can feel at ease, knowing your business was dissolved properly. The service includes taking care of the dissolution filing process on your behalf, and if necessary, notifying you of any missing or pending reports.
The service costs $199, with an additional state fee that varies depending on the state.
Closing a business requires careful planning and it’s important to follow the necessary steps to properly finalize operations and comply with state regulations. If you’re looking to close your business, we’re here to help.
Please note that legal laws and regulations are subject to frequent changes. While we aim to provide helpful information, it's important to understand that this page serves only for informational purposes and does not provide legal or tax advice.
More questions? Getting in touch with us is easy - You can send us an email at contact@tailorbrands.com, click here for our phone contact information, or simply click the Help button located in the bottom right-hand corner of our website.