An LLC is not required to have a set end date in Illinois. This means that unless you include a dissolution date in your operating agreement, your LLC may continue to operate indefinitely. To keep your LLC in good standing, you must submit an annual report to the Illinois Secretary of State each year. If you don’t submit your annual report, your LLC can be automatically dissolved.
Vote on dissolution in Step 1
Voting on dissolution is the first step in closing your LLC or business. This implies that the decision to dissolve the entity must be approved by a majority of the members or shareholders. Depending on your operating agreement or bylaws, a specific threshold of votes can be needed to authorize the dissolution.
Articles of Dissolution must be filed with the Illinois Secretary of State after the dissolution has been granted. Your LLC or corporation is formally terminated by this document. The name of your entity, the dissolution date, and the signature of an authorized representative must all be included in the Articles of Dissolution.
You must settle all existing bills and obligations before terminating your organization. This entails finishing up any unfinished loans, taxes, and other financial commitments. The owners or shareholders may be held personally liable for failure to pay these debts and obligations.
You must terminate all business licenses and permits that have been granted to your firm once all debts and obligations have been paid in full. Any local, state, or federal licenses needed to run your business are included in this.
Before the LLC may be formally closed once it is dissolved, all unpaid debts and responsibilities must be satisfied. The owners or members may be held personally accountable for any outstanding obligations if the LLC is unable to pay them.
The process of ending an LLC or corporation is referred to as dissolution. Contrarily, termination describes the moment at which a thing has been declared closed and has ceased to exist. In other words, termination is the outcome of the process of breakdown, not the process itself.
What is the distinction between cancellation and dissolution? Although dissolution and cancellation are frequently used synonymously, they truly mean two separate things. The term “dissolution” refers to the formal ending of an LLC or corporation. Contrarily, cancellation refers to the procedure of rescinding your registration with the Secretary of State of Illinois. Your LLC or company is no longer allowed to conduct business in Illinois after your registration has been canceled.
It can be difficult to close an entity in Illinois, but if you follow the instructions in this manual, you can make sure that everything is done properly and lawfully. Don’t forget to pay off any unpaid bills and obligations, revoke any business licences and licenses, and submit all required papers to the Illinois Secretary of State. You can close your LLC or corporation with confidence by following these steps.
You must fill out and submit a form titled “Articles of Dissolution” to the Illinois Secretary of State’s office in order to file an article of dissolution in that state. This form contains details such as the entity’s name and address, the cause of dissolution, and the date of dissolution. A filing fee is furthermore due. The form can be submitted electronically or via mail. It is advised to speak with a lawyer or a specialized service provider to make sure all standards are met.