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Dissolving your LLC means that your company is no longer a legal entity with the state. This puts an end to your liability for annual fees, business taxes, annual reports and lawsuits.
To officially dissolve your LLC, you must follow certain steps.
Step 1: Follow the process in your Operating Agreement
Your Operating Agreement should outline what you need to do to dissolve your LLC. Typical items include:
- Meeting with your LLC members to vote on the dissolution.
- Distributing your LLC assets
- Assigning a dissolution date
- Deciding on how to handle business debts
- Contacting creditors
Step 2: Check your business tax accounts
Pay all outstanding balances for:
- Your sales and use tax
- Employee withholding tax
- Unemployment insurance tax
- Any interest or fees due
Step 3: Close your tax and state accounts
Typically, closing your tax and state accounts requires sending a final return to the right agency (e.g. DRS).
However, you may have to file other paperwork for closing certain tax accounts.
You can also close your DRS tax and state accounts online at myconneCT.
Confirm with your CPA the exact details for this process.
Step 4: Close your business tax withholdings
You will also need to close your business tax withholdings to officially stop paying employee wages. Generally, this involves filing the correct forms, issuing W2 forms to your workers, and submitting copies to DRS.
Learn more about the process for ending your business tax withholdings.
You will also need to contact Connecticut's Department of Labor to cancel your employee registration.
Step 5: Close your unemployment tax account
To close your unemployment tax account, please visit Connecticut's Department of Labor. Or you may call them directly during their office hours at 860-263-6000.
Step 6: Contact your LLC's bank
To close your business bank account, contact your bank for exact procedures. You will need to leave enough funds in your account during the dissolution process to pay off creditors and anything else you owe. If you do not do this, a creditor may try to obtain assets from your LLC members after these funds are distributed to them.
Beyond these steps, contact your legal team and your accountant to provide you with more specific details for successfully dissolving your LLC in Connecticut.