Dissolving a U.S. LLC can be complicated, especially for non-U.S. residents. Nevertheless, it is important to know how to properly dissolve a business to protect yourself from unnecessary taxes, legal penalties, and ongoing fees.

There are many reasons for considering this option, such as the LLC no longer being operational, restructuring, or simply wanting to close it. Knowing how to do this the right way is crucial to avoiding problems down the road. This guide explains everything about how to dissolve a US LLC: requirements, costs, timelines, and how EasyFiling helps U.S. and non-U.S. residents facilitate the process.

Dissolving a U.S. LLC

To dissolve a U.S. LLC means to formally close the company with the state where it was registered and end its legal existence. Proper dissolution ensures the state and IRS do not consider the business active, avoiding ongoing obligations and penalties.

There are two types of dissolution:

Voluntary dissolution: When the owners decide to close the business.

Involuntary dissolution: When the state closes the LLC due to non-compliance, such as unpaid fees or missing annual reports.

Without proper closure, fines, taxes, or legal issues can arise.

What You Need to Do to Dissolve a U.S. LLC

Even though each state has its own rules, dissolving an LLC in the U.S. generally involves the following steps:

• Member Approval: LLC members must agree to the dissolution in writing, usually via a written resolution or meeting minutes.
• Submitting the Articles of Dissolution: Notify your state’s Secretary of State that your LLC is closing with the proper documents.
• Settling Business Debts and Obligations: Pay off any business loans, vendor payments, and other outstanding liabilities.
• Federal and State Tax Obligations: Close your EIN with the IRS, file all pending taxes with federal and state authorities, and settle any remaining tax obligations.
• Cancel Licenses and Permits: Terminate all business licenses and permits to avoid renewal fees, interest, or penalties.

Completing these steps ensures your LLC is legally closed with no remaining obligations.

Step-by-Step Process to Dissolve a U.S. LLC

Here’s a practical, step-by-step guide to dissolve a US LLC efficiently:

Step 1: Internal Approval

Obtain written consent from all LLC members confirming the decision to close the business.

Step 2: Cancel Registration of Your LLC

File the dissolution form in your state. Some states process filings immediately, while others may take weeks. Filing can be done online, by mail, or in person, depending on the state.

Step 3: Pay Debts

Notify creditors if required by your state and settle all outstanding obligations to ensure a clean dissolution.

Step 4: Terminate Business Licenses, Permits, and Accounts

Close business bank accounts, credit lines, payroll accounts, and cancel federal, state, and local licenses.

Step 5: Complete Your Business Taxes

File final federal and state tax returns. If your LLC had employees, submit the final payroll filings as well.

Step 6: Cancel EIN with the IRS

Notify the IRS to officially close your Employer Identification Number.

Step 7: Preserve Important Records

Keep copies of dissolution documents, tax filings, and licenses for future reference, audits, or inquiries.

Costs Associated with Dissolving a U.S. LLC

Costs vary depending on the state and whether professional services are used:

• State Filing Fees: Range from $0 to $100. Some states may require tax clearance, which can add extra fees.
• Service Provider Fees: EasyFiling charges $100–$500+ for preparation, filing, and compliance assistance.
• Other Costs: May include terminating licenses, legal or accounting support, and mailing notices to creditors.

Proper planning helps minimize expenses and avoid unexpected costs.

Timeline for Dissolving a U.S. LLC

The timeline depends on state requirements and the complexity of the business:

• Internal Approval: 1–3 days
• State Filing: Same day to a few days
• State Approval: 1 day to 4 weeks
• Settling Debts and Closing Accounts: 1–2 weeks
• Final Tax Filings: Soon after year-end or immediately if the business has stopped operating

Unpaid taxes, missing filings, or unresolved debts can extend the timeline.

Common Mistakes to Avoid

Many LLC owners face issues due to skipped steps or mismanagement. Common mistakes include:

• Not filing final tax returns
• Leaving business bank accounts open
• Failing to cancel licenses or EINs
• Filing incomplete or incorrect dissolution forms
• Ignoring debts or obligations

Avoiding these mistakes ensures a smooth, compliant closure without future penalties.

How EasyFiling Can Help

Dissolving a U.S. LLC is easier with EasyFiling’s full-service solution for U.S. and non-U.S. residents:

• Total Preparation and Filing: EasyFiling handles Articles of Dissolution with the state.
• Tax and Compliance Assistance: Ensures all federal and state obligations are met.
• Avoid Delays and Mistakes: Prevents missing steps that could lead to fines or delays.
• Designed for Non-Residents: Guides non-U.S. residents navigating IRS and state requirements.
• Peaceful and Efficient: Manages all paperwork and communication with the state on your behalf.

With EasyFiling, clients can dissolve a US LLC legally, efficiently, and without stress.

Conclusion

Dissolving a U.S. LLC is an essential step to protect yourself from penalties, taxes, and ongoing obligations. By following proper steps—member approval, filing Articles of Dissolution, settling debts, notifying the IRS, and canceling licenses you ensure a smooth and compliant closure.

For U.S. and non-U.S. residents seeking a reliable, hassle-free process, EasyFiling provides an end-to-end solution to dissolve US LLC with confidence and peace of mind.