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What steps should I take to properly dissolve my California LLC?

Picture of Chris Battis By   ·  1 minute read

To properly dissolve a California LLC, there are several steps that must be taken to ensure that all legal requirements are met.

  1. Vote on the Decision to Dissolve: The members or managers of the LLC must first vote on the decision to dissolve the company. If the LLC has more than one member, a majority vote is required to dissolve the company. If the LLC only has one member, that member can make the decision to dissolve the company on their own.
  2. Wind Up the Business Affairs: Once the decision to dissolve the LLC has been made, the LLC must then wind up its business affairs. This involves collecting and liquidating assets, paying off debts and obligations, and distributing any remaining funds to the members.
  3. File Articles of Dissolution: After winding up the business affairs, the LLC must file articles of dissolution with the California Secretary of State. The articles of dissolution must include the name of the LLC, the date of filing, and a statement that the LLC has been dissolved.
  4. Pay Taxes and Fees: The LLC must pay any outstanding taxes and fees to the state of California before filing the articles of dissolution.
  5. Terminate Business Licenses and Permits: The LLC must cancel any business licenses and permits that it holds with the state or local government.
  6. Notify Creditors, Customers, and Employees: The LLC must notify its creditors, customers, and employees of its intention to dissolve.

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 the California Worker Adjustment and Retraining Notification (WARN) Act, which requires employers to provide advance notice of layoffs. Additionally, if the LLC has outstanding legal disputes, it may need to take additional steps to resolve those disputes before dissolving.

If you have any questions or concerns about dissolving your California LLC, it is recommended that you consult with a licensed attorney who can provide you with specific legal advice based on your unique situation.