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 Vermont, simply follow these three steps:
Step 1: Follow Your Vermont 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 Vermont LLC has various tax accounts that are maintained by different departments within the Vermont 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 Vermont:
- Unemployment Insurance Tax
- Employee Withholding Tax
- If your LLC sells or has sold taxable goods or services in Vermont:
- 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 Vermont as Articles of Termination, 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.
Vermont requires business owners to submit their Articles of Termination by mail or online.
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 Vermont LLC Resources
- Best LLC Services
- How to Start an LLC in Vermont
- Vermont LLC Operating Agreement
- Vermont Annual Report
- How to Start a Business in Vermont
- Vermont Articles of Organization
- How to Register a Business Name in Vermont
- Certificate of Good Standing Vermont
- How to Start a Corporation in Vermont
- How to Start a Nonprofit in Vermont
- How to Name a Business in Vermont
- How to Get a DBA in Vermont
- Vermont LLC Name Search