How to File an Article of Dissolution in Illinois

How do I file an article of Dissolution in Illinois?
An articles of dissolution form (Form BCA 12.20) is available for download from the SOS website. You must submit two copies of the articles. There is a $5 fee to file the articles. Your filing usually will be processed in 7-10 days.
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You must submit an article of dissolution to the Illinois Secretary of State if you no longer want to run your company or nonprofit organization in Illinois. This legal document, which must be filed in accordance with state legislation, formally ends the existence of your organization. What you should know about filing an article of dissolution in Illinois is provided below.

Determine Your Eligibility in Step 1

Make sure your organization qualifies for dissolution in Illinois before filing an article of dissolution. For instance, a nonprofit organization must be debt-free or have a strategy in place to settle any outstanding commitments. The dissolution of a corporation requires the consent of a majority of the directors or shareholders.

2. Finish the application

You must fill out the relevant Illinois Secretary of State form in order to submit an article of dissolution. Basic information regarding your organization, like its name, address, and legal makeup, will be requested on the form. Along with the effective date of the dissolution, you must also state the cause for the dissolution.

3. Submit the Form

The form must be sent to the Illinois Secretary of State after completion. This can be done in person, online, or by mail. Depending on the sort of organization you are dissolving, there is a filing cost. The Illinois Secretary of State will amend its records to reflect that your group is no longer operational after your article of dissolution is submitted.

Illinois Nonprofit Organization Dissolution Procedures

There are a few more processes you must complete in Illinois if you’re dissolving a nonprofit organization. You must first request a letter of authorization from the Illinois Attorney General’s office. This letter attests to the Attorney General’s lack of opposition to the dissolution of your organization. Additionally, you’ll need to inform any creditors of your intention to dissolve the organization and issue a notice of that intention in the local newspaper.

An article amendment is what?

A legal document known as a “article amendment” updates a corporation’s or LLC’s articles of incorporation or organization. Changes to your organization’s name, address, mission, or other important information are made using this document. You must fill out the relevant form given by the Illinois Secretary of State in order to submit an article amendment.

How to Update Your LLC’s IRS Information

You must submit Form 8822-B, the Change of Address or Responsible Party-Business form, to the IRS in order to modify your LLC. Any changes to the address or responsible party for your LLC are reported on this form to the IRS. This form must be submitted within 60 days of the modification.

How to Terminate a Business Partner

You should analyze your partnership agreement to identify the best course of action if you want to kick out a partner from your company. You might need to get legal counsel if your partnership agreement doesn’t cover this situation. Generally, to remove a partner’s name from the business, you must get their consent and that of the surviving partners, as well as submit the necessary papers to the state. This can entail submitting an updated operating agreement or articles of organization to the Illinois Secretary of State.

FAQ
What happens to debt when LLC is dissolved?

When an LLC is dissolved, its remaining assets should be used to settle its debts and liabilities. According to their portion of ownership in the LLC, the LLC owners may have to pay the remaining obligations out of their own pockets if there are not enough assets to meet all of the liabilities. It’s crucial to remember that the procedure for dissolving an LLC will differ depending on the regulations of the state and the operating agreement of the LLC.

Accordingly, can you walk away from an llc?

You can dissolve an LLC by submitting an article of dissolution to the state, so the answer is yes. With the signing of this legal instrument, the LLC’s existence is formally ended, and you are released from any remaining duties and liabilities. To ensure that you are fully protected and in accordance with all legal requirements, you should speak with an attorney and follow the processes for dissolving an LLC in your state.