How to close a business—both an LLC and an S Corp?
By Nina Kaufman, Esq.Q.: I have started two companies one an LLC and the other an S Corp that I used for a very short time and would like to stop using. How do you go about the process to close a business?
A.: Just as you needed your Secretary of State’s permission to open your business, you’ll need its permission to dissolve, or close a business. The first step to close a business is to ensure that there are no outstanding taxes or tax returns that need to be filed, and that you’re not leaving any creditors in the lurch.
Then you can file what’s sometimes called a “Certificate of Dissolution.” It’s not a difficult process, but it will involve some paperwork. Speak to your attorney and accountant to confirm the documents you’ll need to file in your state to close a business.
What other law questions do you have about transfer of ownership and closing a business?
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