What are the steps I need to take to dissolve a limited liability company in Illinois?
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To dissolve a limited liability company (LLC) in Illinois, there are several steps that must be taken:
- Vote to dissolve the LLC
- File articles of dissolution with the Illinois Secretary of State
- Cancel all registrations and permits
- Wind up the LLC's affairs
- File a final tax return
The first step in dissolving an LLC in Illinois is to hold a vote of the LLC members. The vote must be held in accordance with the LLC's operating agreement or Illinois law, whichever is applicable. If the LLC is manager-managed, the vote must be held by the managers.
After the vote to dissolve the LLC has been taken, the next step is to file articles of dissolution with the Illinois Secretary of State. The articles of dissolution must include the LLC's name, the date of the vote to dissolve, and the reason for dissolution. They must also include a statement that the LLC has paid or made provision for the payment of all of its debts and obligations.
The LLC must cancel all of its registrations and permits with the state of Illinois and any local government agencies. This includes any business licenses, tax registrations, and permits related to the operation of the LLC.
The LLC must wind up its affairs and distribute its assets to its members in accordance with the LLC's operating agreement or Illinois law. This includes paying any outstanding debts and obligations and filing any final tax returns.
The LLC must file a final tax return with the Illinois Department of Revenue and the Internal Revenue Service. This return must cover the period from the beginning of the tax year until the date of dissolution.
It is important to note that there may be additional steps required depending on the specific circumstances of the LLC. For example, if the LLC has employees, it must comply with certain employment laws and regulations before dissolution. Additionally, if the LLC is involved in any legal disputes, those disputes must be resolved before dissolution. It is recommended that the LLC consult with a licensed attorney to ensure that all necessary steps are taken to properly dissolve the LLC.
In conclusion, the above steps must be followed to dissolve a limited liability company in Illinois. It is important to note that the process of dissolving an LLC can be complex, and it is recommended that the LLC consult with a licensed attorney to ensure compliance with all applicable laws and regulations.
