If you take the proper actions, dissolving a single member LLC in Illinois can be a simple procedure. You must submit the proper paperwork to the Illinois Secretary of State’s office regardless of whether your firm is closing down or merging with another one. This article will explain how to dissolve a single member LLC in Illinois and provide answers to some associated questions.
The filing of Articles of Dissolution with the Secretary of State’s office is the initial step in dissolving an LLC in Illinois. The name of your LLC, the dissolution date, and a declaration that the LLC has settled all debts and obligations should all be included in these articles. The Articles of Dissolution can be submitted online or by mail. For online filings, the filing fee is $5; for hardcopy files, it is $10.
You must request a Certificate of Good Standing from the Illinois Secretary of State’s office after submitting the Articles of Dissolution. This document attests to the fact that your LLC has paid all required taxes and fees and is in good standing with the state. This document could be required to shut bank accounts, revoke licenses, or pay off any outstanding debts.
Step 3: Inform State Tax Agencies and the IRS
You must inform the IRS and state tax authorities of your dissolution if your LLC was taxed as a partnership or S company. You must submit your final tax return and make any required payments. Penalties and interest charges may be assessed for failure to comply.
Step 4: Removing business permits and licenses Any business licenses and permissions you got from the state or local government must be revoked after dissolving your LLC. This will shield you from yearly renewal expenses and legal responsibility for any infractions that take place after the dissolution of your LLC. How Long Does It Take in Illinois to Dissolve an LLC?
Depending on the busyness of the Secretary of State’s office and the completeness of your paperwork, dissolving an LLC in Illinois can take a while. Online filings are typically processed in 5-10 business days whereas paper filings take 2–4 weeks. However, the procedure can take longer if there are any mistakes or missing data.
Your LLC’s good standing with the state can be verified by a Certificate of Good Standing. It demonstrates that you’ve paid all applicable taxes and levies as well as met all prerequisites for conducting business in Illinois. This document could be required to liquidate bank accounts, change ownership, or pay off any outstanding debts. Is a Certificate of Good Standing Required?
Although a Certificate of Good Standing is not legally necessary, getting one is a good idea. It serves as formal documentation proving at the time of dissolution, your LLC was in good standing with the state. This can be helpful if you have to show potential creditors, partners, or investors your company’s financial history.
Do I Need an Illinois Certificate of Status for My LLC? Another formal document issued by the Illinois Secretary of State’s office is a Certificate of Status. It displays the current state of your LLC, along with its formation date, registered agent, and legal form. This certificate may not be required for reasons of dissolution, but it may be required for other commercial dealings.
In Illinois, you do indeed need to renew your LLC annually. All LLCs must submit an Annual Report and pay a filing fee to the state of Illinois in order to keep their good standing. By the first day of the LLC’s anniversary month each year, the Annual Report and fee are due. Penalties and even the dissolution of the LLC may follow from failure to submit the report and pay the fee.