Steps to Dissolve Your Company

There are three essential steps involved in the dissolution of a business. Blugency performs these steps promptly on your behalf, simplifying and streamlining the process that would otherwise be complicated and stressful.

1- Meeting with Owners & Board of Directors

In this scenario, you want the meeting to show that a vote was held and the Board of Directors attained the appropriate majority (as stated in your company's incorporation documents and operating agreement). The majority vote of shareholders is used to reach a conclusion. Most shareholders must sign a resolution approving the dissolution to dissolve the company. When it is done, we may proceed to the next phase of the dissolving procedure. Single-member LLCs may skip this step.

2- Paying All Franchise Taxes and Filing Annual Reports

For the current and dissolution tax years, the company will have to file annual reports and pay franchise tax, if needed. For instance, a company incorporated in 2021 and dissolving in 2022 should pay franchise tax for both years in Delaware.

3- Filing the Articles of Dissolution

To file the Articles of Dissolution, you must choose the correct form that meets your entity type, sign it, and submit it to the Secretary of State, along with filing fees if required. If your company is registered as a foreign entity, you must withdraw it from the foreign State and dissolve it in the initial incorporating State. Don't worry; we'll handle everything necessary to dissolve your company.

4- Notifying the IRS

You are responsible for paying all federal taxes and submitting a request to close your Employer Identification Number account with the IRS. You can Hire us to submit a request to the IRS to close your Employer Identification Number account by clicking on Close EIN Business Account.

💡 At this point, another step often suggested is closing all credit lines and accounts for your business. Additionally, if you have any fictitious names in other states, you should cancel them.