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 New York, simply follow these three steps:
Step 1: Follow Your New York 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 New York LLC has various tax accounts that are maintained by different departments within the New York 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:
- New York Franchise Tax
- Industry Specific Taxes
- If you have or have had employees in South Carolina:
- Unemployment Insurance Tax
- Employee Withholding Tax
- If your LLC sells or has sold taxable goods or services in South Carolina:
- 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 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.
New York requires business owners to submit their Articles of Dissolution by mail.
File the New York LLC Articles of Dissolution
You can also have a professional service provider file your Articles of Dissolution for you. Incfile prepares the Articles of Dissolution for you, and files them to the state for $149 + State Fees.
Other New York LLC Resources
- Best LLC Services
- How to Start an LLC in New York
- New York LLC Operating Agreement
- New York Biennial Report
- How to Start a Business in New York
- New York Articles of Organization
- How to Register a Business Name in New York
- Certificate of Good Standing New York
- How to Start a Corporation in New York
- How to Start a Nonprofit in New York
- How to Name a Business in New York
- How to Get a DBA in New York
- New York LLC Name Search