How to Dissolve Your LLC or Corporation
In the event that circumstances deviate from our plans and result in the need to dissolve your LLC or C-Corporation, understanding the process is critical. There are two primary methods of dissolution: Administrative Dissolution and Formal Dissolution.
Administrative Dissolution
Pros
Costs: $0 Dollars
Cons
- Your company cannot be reopened until all outstanding fees are paid.
- Being listed as delinquent will damage your company’s online reputation and hinder future inquiries.
- The timing of your company’s official closure is beyond your control, potentially resulting in missed compliance deadlines and further delays in the dissolution process.
- The company name cannot be reused for another business for a period of two years.
- A fee of up to $250 may be charged to reinstate the company, in addition to the settlement of all outstanding debts.
Recommendation
As you can see, there are many drawbacks to choosing administrative dissolution. Your options will be severely limited, and we strongly advise against this course of action.
Formal Dissolution
Pros
- The company name can be used again immediately if you decide to reopen your company.
- There are no fees to reinstate your company, all you need to do is file your new Articles of Incorporation.
- The company will be terminated on a specific date of your choice, so no new actions can be filed against it after that date. There is no need to keep track of your company’s compliance after that date.
- The dissolution is clean and official with the state.
Cons
Costs: State Fees, depending on your state of incorporation.
Recommendation
In fact, choosing to file Articles of Dissolution for your company is the more professional route. It involves fulfilling obligations such as paying debts, closing bank accounts, and distributing profits to LLC members.
Avoid the hassle and let Startxpress take care of your dissolution. We will simplify the process for you. As a founder, your time is valuable and finding the right help can be tedious.
For more details, check out the Startxpress Help Center and Blog. If you need assistance, contact us at support@startxpress.io! We’re here to help make managing your business as smooth as possible.
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