A Texas Guide to Dissolving an LLC
If you’re trying to dissolve a limited liability company in Texas, you’ll find that it’s no simple feat. Luckily, ClickDissolve can handle the process for you. Whatever the reason for ending the company, you can’t just decide to not continue your business. The termination process involves several steps, including filing paperwork with the Secretary of State.
Dissolving a business is a stressful process. It’s not something easily completed online. Instead, let ClickDissolve take care of the hard work for you with a simple, online process.
Why do I need to dissolve my LLC?
There are many reasons why a business may come to an end. Sometimes, entrepreneurs decide they no longer want to run the business because of life changes or other personal reasons. Other times, a business just doesn’t survive. It could be due to anything from a change in market conditions to an insurmountable setback. But no matter the reason, the process to legally terminate the business is the same.
If you don’t go through the legal process of closing your business, you open yourself up to a number of risks. Most states require annual fees for an LLC that is still operational. So, not dissolving your LLC can result in you still owing these costs, plus potential late fees and penalties. In addition, government bodies will still expect annual reports from your business and could penalize you for not submitting the necessary information.
In short, properly dissolving your LLC can greatly reduce your financial and legal risks down the road. That’s why it’s important to ensure you complete the process.
What is the process to dissolve an LLC?
Texas is slightly unique — unlike most other states, it does not have a separate LLC Act. Instead, most Texas limited liability companies are overseen by the Texas Business Organization Code, also known as the BOC. So, the dissolution process in Texas will not look the same as it does in most other states.
If you’re going through the process of dissolving an LLC on your own, there are several steps you must take. Here is a brief walkthrough of things you need to do to complete the termination process.
Winding down tasks
Once you (and any partners you may have) make the decision to terminate your business, you will need to begin the process of winding down the business. For this step, it’s important to conclude all active business and contracts. This means you cannot start any new business endeavors.
You will need to take care of any remaining business debts, as well as distributing or selling any remaining business assets. A thorough list of all the steps involved in the winding down process can be found in the BOC.
Request a Certificate of Account Status
Once your local and federal taxes have been taken care of for the final time, you need to apply for a Certificate of Account Status for Dissolution/Termination from the Texas Comptroller of Public Accounts. This certificate indicates that your business has paid all taxes required by Title Two of the Tax Code.
To request a certificate, you must fill out Form 05-359. You can also contact the Comptroller by mail, phone, or email. Once you get your certificate, it must be filed with the Secretary of State. It is important to note, however, that you cannot use printouts from the Comptroller’s website.
To get the official certificate, you will need to file the form online or in person at a Comptroller Field Office. Each method has its own benefit. While filing online is quick and easy, it will ultimately take you up to four to six weeks to receive your certificate. Filing in person may be a little more involved, but you can get your certificate on the spot.
Certificate of Termination
Once you’ve completed winding down your business and you’ve gotten your certificate of account status, the next step is filing a certificate of termination with the Secretary of State. You’re required to submit two signed copies, and the Secretary of State website has sample forms for you to use.
Your certificate of termination needs to include certain specific information. The BOC indicates that your form must contain:
- The name of your LLC
- The name of one or all LLC managers
- The file number of your LLC as assigned by the Secretary of State
- The reason behind your LLC dissolution
- A statement indicating that your LLC has complied with all the winding down solutions laid out in the BOC
- The signature of the authorized manager or authorized member-manager
- The effective date of the certificate, be it the filing date or a date up to 90 days after filing
This may not be a complete list, so check with the Business Organization Code to ensure you don’t miss any important details. Missing details can result in your application for termination being denied.
Finally, don’t forget to attach your certificate of account status when you submit your application. Again, it has to be an official file from the Comptroller’s office; a printout from the website is not sufficient. If you only attach a printout, your certificate of termination will be rejected.
Cover the fee
When you file your certificate of termination, you must also submit a fee. Currently, the cost of filing a certificate of termination is $40. Once the Secretary of State receives your application, your fee, and other necessary paperwork, the filing process will usually take three to five days to complete.
You will receive paperwork confirming that your LLC has been terminated, and with that, the process is done. Make sure to keep these papers for your record.
What you may notice about this list is that there’s no simple, one-step way to dissolve your LLC online.
How can ClickDissolve help me?
If that list of tasks seems a bit arduous, there’s no need to worry. ClickDissolve can take that stress off your shoulders by handling the process for you. They can save you from all the red tape and bureaucracy that can tangle an already stressful time in your life.
By using ClickDissolve’s online service, you can save yourself time and energy and let the company’s specialists do the work. Your leg of the process is completely online.
What is ClickDissolve?
ClickDissolve is a veteran-owned business operating across the United States. Founded in 2010, ClickDissolve aims to assist entrepreneurs by helping them obtain legal business advice more easily. It’s important to note that the company is not a law firm, nor does it dispense legal advice. But it can help connect entrepreneurs with the right entities. Primarily, the company’s goal is to help entrepreneurs who are going through the process of establishing or dissolving a business.
How does ClickDissolve work?
ClickDissolve is easy to use. You start by answering a few simple questions about your company.
This is to gather the information that the government of Texas legally requires for dissolution. From there, the company’s specialists review your information and file all necessary paperwork. If they need any more information, they will contact you, but otherwise, they will handle everything else for you.
And it’s as simple as that! Your business will be officially terminated without any major stress on your end. The only remaining task for you is to notify the appropriate state and federal agencies. ClickDissolve can even inform the IRS if you choose, but it’s up to you to ensure all of your tax obligations have been handled beforehand.
ClickDissolve offers same-day processing, so your application will be reviewed and forwarded within one business day. You can also track your order’s progress in real time and access your documents at any time. Additionally, the company follows strict privacy guidelines, ensuring that your information is never shared with anyone.
The company charges a flat fee for this service, alongside the government fees. There are no hidden costs and no contracts involved. Best of all, the company offers a 100% satisfaction guarantee.
The bottom line
ClickDissolve has helped more than 10,000 business owners close and move on from their previous businesses. With more than a decade of service under its belt, the company is well-versed in the process of dissolving an LLC. Most importantly, the company’s specialists can take that burden from your already heavy shoulders.
Ending a business can be complicated and stressful, and terminating the LLC with the government is a lengthy and onerous process. With all the steps and the paperwork involved, it can be overwhelming. ClickDissolve knows the struggles and headaches of this process and wants to help business owners through it.
So if you’re considering dissolving an LLC in Texas, let ClickDissolve make it easy for you. With mere minutes of your time, ClickDissolve can take on the challenges so you don’t have to. Contact ClickDissolve today to learn more about how they can help you.