Saying Goodbye to Business: Closing Your LLC After BankruptcyDallas Legal News
Though some individuals will continue to run their business after they have filed for bankruptcy, others might feel that bankruptcy is the end of everything they have grown. If you were unable to pay all of your debts while you had a limited liability company, you might have filed for bankruptcy protection and feel that it is the best option for you now and in the future. However, just because you filed for bankruptcy does not mean that your LLC officially ends on its own. Today, we want to explain how you can dissolve your LLC once and for all, officially ending your business.
How Bankruptcy Works for Your Business
You’ve been running an LLC for years and perhaps it is all you have come to know. Now you’re going through Chapter 7 bankruptcy for your business and it is a new venture, unlike anything you have ever known. If an LLC was formed through a specific state, the LLC will continue to exist until somebody takes the steps to formally dissolve the business. This means unless it is dissolved in the eyes of the state, the LLC will be expected to file annual reports, pay fees, and pay minimum taxes. It could fall subject to fines and penalties if it does not do so and you do not want this to happen, so after the bankruptcy process has started, it is important to consider how you can dissolve the business before it wreaks any more financial turmoil on you.
When the bankruptcy process takes place, one benefit is that creditors who are still owed debts will receive a notice that the LLC will no longer incur business debts. Here are some ways that you can dissolve your LLC:
- If you are a member of the LLC, you must approve of the dissolution. There are always laws and procedures concerning what you can do based on the state where the LLC was formed.
- You will receive dissolution documents, which must be filed so that the process can move forward. These documents will be filed with either the Secretary of State or another state agency that takes care of these types of records.
- You might have to gain approval that you are current on all of your taxes before the state will dissolve the LLC.
If you are dissolving your LLC, you should also notify the IRS to let them know that the business has formally closed for business. You should also close the Employer Identification Number so that everybody is aware that the business is no longer operating. The last thing that you should do is to notify any licensing authorities if you hold any type of business licenses so that they are no longer active.
How You Can Receive Help
Closing an LLC might seem like a complicated step to take once you have filed for bankruptcy. No part of the bankruptcy process is going to be easy, but, luckily, we can make the transition easier for you during this desperate time. At M.J. Watson & Associates, our experienced bankruptcy professionals have helped many clients work through the process of bankruptcy when it seemed like the best option for them. At our specialized bankruptcy firm, we are willing to listen to you as you alert us to your specific scenario and take a closer look at the best options for your business. Contact us as soon as possible to get started at (214) 965-8240.