There are particular procedures you must follow in order to dissolve a single-member LLC that you own in Tennessee. By correctly dissolving your LLC, you can be confident that you won’t have any legal problems or tax obligations in the future. We will walk you through Tennessee’s single-member LLC dissolution procedure in this article.
Articles of Dissolution must be filed with the Tennessee Secretary of State in order to dissolve your LLC. This can be done by mail or online. The name of your LLC, the reason for dissolution, and any other relevant information will be stated in the Articles of Dissolution. Additionally, there is a $20 filing fee that you must pay.
You must inform the Tennessee Department of Revenue and the IRS that you are dissolving your LLC after you have submitted the Articles of Dissolution. This will guarantee that you won’t owe any further taxes in the future. Additionally, you need to revoke any business licenses and permissions you may have.
Step 3: Fulfill Any Outstanding Liabilities You must pay off all outstanding debts before terminating your LLC. Any unpaid bills, taxes, or other financial responsibilities are included in this. Additionally, you ought to break any leases or obligations you may have.
You must distribute any leftover assets in your LLC to the members if there are any. This can be accomplished in accordance with the operational agreement of the LLC or by a member vote.
Additionally, LLCs in Tennessee have the option of choosing to pay corporate tax rates. Your LLC will be liable to corporate taxation if it chose to be taxed as a corporation. Currently, Tennessee’s S corporation tax rate is 6.5% of taxable income.
The cost to form a S Corp in Tennessee will vary depending on a number of variables, including whether you elect to work with an attorney to guide you through the formation process. In Tennessee, there is a $100 filing cost to register as a S corporation.
In conclusion, there are a number of processes involved in dissolving a single-member LLC in Tennessee, including filing Articles of Dissolution, informing the IRS and state tax authorities, paying off any outstanding debts, and distributing any residual assets. To avoid any future legal or tax concerns, it is crucial to properly follow these measures. Additionally, LLCs in Tennessee have the option of electing to be taxed as corporations, and the price to establish a S Corp in Tennessee will vary depending on a number of circumstances.