Closing a company is often a bureaucratic obstacle course, with notaries, registers, publications and running costs along the way. In the US? One form, a small fee, done.
If you are toying with the idea of closing your LLC, rest assured: it is no drama. Here is the simple roadmap.
Why you should close your LLC properly
Many people simply let their LLC "fall asleep". That is a mistake.
As long as your company is on the state register, ongoing obligations keep arising. Depending on the state, there are annual fees. On top of that, the IRS or the state often still expect tax returns, even if you stopped making sales long ago.
That can get really expensive.
So: dissolve it properly and in good time, and do it officially.
The process: how to close your US LLC correctly
1. A resolution to dissolve
You don't need a notarised deed. An informal resolution by the members (the owners) is entirely sufficient: "We are winding up the LLC as of [date]." If you are the only member, you can even pass it on your own.
2. Filing the Articles of Dissolution
Now it becomes official. You file a short form with the Secretary of State of your state, usually a single page, online or by mail. Filing usually costs between $0 and $200.
That's it: the LLC is then formally dissolved.
3. File the final tax return(s)
If you had a foreign-owned disregarded entity (for example, an LLC owned from abroad with no ECI), you still need to file Form 5472 and the pro forma Form 1120, with the "Final Return" box ticked. If you had revenue in the US, a final federal tax return may be due as well.
4. Close the bank account, pay out remaining funds, archive documents
Finally, close the business account, transfer any remaining balance to yourself, and keep important records safe for a number of years (depending on your country of residence, at least 6 to 10 years).
Done.
In the US, you can close in two weeks.
Frequently asked questions about dissolution
What about open invoices or debts? Before dissolving, settle all receivables and liabilities. If you have run things properly, you are not personally liable; that is exactly why you have the LLC.
Can I reactivate the LLC later? In some states, yes. In others you have to form a new one. Talk to us, and we will check it for you.
What about the IRS? Do I need to "apply" for anything? No, the IRS does not confirm a dissolution. But you should file all outstanding tax returns, tick the "Final Return" box and keep your records.
Want to close your LLC? We handle it for you
You want to close your LLC properly? No problem, we take care of it for you:
- We prepare and file the Articles of Dissolution in the right state
- We handle the tax side, including Form 5472 / pro forma 1120 (if required)
- We check whether dissolution really is the best route, or whether, for example, moving to another state would make more sense
- You receive clean documentation for your records
Book a consultation now (held in English)
Easy to form, easy to close: that's how business should be
If you plan smartly, you think not only about the formation but also about the exit. And that is exactly where a US LLC shows its strength.
You don't need notaries or publications. Just a decision, a form and a little order in your records. Done.
If you like, we will do it for you: straightforward, compliant and stress-free.