How to Dissolve an LLC in Colorado
If you no longer wish to conduct business with your LLC, it is important to officially dissolve it. Failure to do so in a timely fashion can result in tax liabilities and penalties, or even legal trouble.
To dissolve an LLC in Colorado, simply follow these three steps:
Step 1: Follow Your Colorado LLC Operating Agreement
- Holding a vote with LLC members to dissolve the LLC
- Recording the dissolution vote in the LLC’s meeting minutes
- Determining the formal date of dissolution
- Distribution of LLC assets
- Notifying creditors and settling any business debts
If your LLC does not have any set dissolution procedures in its operating agreement, you should consult the state for further instruction.
Step 2: Close Your Business Tax Accounts
Every active Colorado LLC has various tax accounts that are maintained by different departments within the Colorado State government. Before you can dissolve your LLC, you must first pay off all taxes and/or fines owed to these accounts.
Here are some of the common taxes your LLC may owe:
- If you have or have had employees in Colorado:
- Unemployment Insurance Tax
- Employee Withholding Tax
- If your LLC sells or has sold taxable goods or services in Colorado:
- Sales & Use Tax
Closing your tax accounts usually involves simply filing a final return to the appropriate agency. However, some accounts require submitting other official paperwork. If you need assistance in closing your tax accounts, it may be helpful to hire a Certified Public Accountant.
NOTE: None of your LLC's tax accounts can be closed if they have a remaining balance. All taxes, penalties, fees, and interest must be paid in full before you can dissolve your LLC.
Step 3: File Articles of Dissolution
Articles of Dissolution, known in Colorado as Statement of Dissolution, are the forms that you file to voluntarily dissolve your LLC. Once this document has been filed and processed, your LLC will no longer legally exist.
Colorado requires business owners to submit their Statement of Dissolution by online.
File the Colorado LLC Statement of Dissolution
File Online With the Colorado Secretary of StateFile Online
Instructions: Colorado Secretary of State website
You can also have a professional service provider file your Articles of Dissolution for you. Bizee (formerly Incfile) prepares the Articles of Dissolution for you, and files them to the state for $149 + State Fees.
Other Colorado LLC Resources
- Best LLC Services
- How to Start an LLC in Colorado
- Colorado LLC Operating Agreement
- Colorado LLC Annual Report
- How to Start a Business in Colorado
- How to File the Colorado LLC Articles of Organization
- How to Register a Business Name in Colorado
- Certificate of Good Standing Colorado
- How to Start a Corporation in Colorado
- How to Start a Nonprofit in Colorado
- How To Name a Business In Colorado
- How to Get a DBA in Colorado
- Colorado LLC Name Search