To dissolve a California-based LLC, there are several steps you must take.
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Hold a Meeting: Schedule a meeting between the members or managers of the LLC to discuss and vote on dissolving the company.
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File Articles of Dissolution with the State: Prepare and file Articles of Dissolution with the California Secretary of State's office. This form includes information about the LLC's name, business purpose, date of dissolution, and the signature of a member or manager; there is a fee to file this form.
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Notify Creditors and Other Parties: Notify any known creditors or other parties that the LLC is being dissolved; this can be done in writing or via email.
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Settle All Debts and Obligations: Before dissolving the LLC, all debts and obligations must be settled, including paying off any outstanding creditors or taxes owed to the state.
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File Final Tax Returns: The LLC must file final tax returns with the IRS and the California Franchise Tax Board. This may include Form 1065 or Form 1120S, depending on the type of LLC.
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Cancel Licenses and Permits: Cancel any licenses or permits that were obtained for the LLC, such as a business license or seller's permit.
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Notify Employees: Notify employees of the LLC's dissolution and any necessary information regarding their final paychecks and benefits.
It is important to note that if the LLC has any outstanding legal issues, such as pending lawsuits or debts, these must be resolved before the dissolution. Additionally, if the LLC has any assets or property, these must be distributed to the members or sold to pay off outstanding debts.
If you need further legal advice for dissolving your California-based LLC, it is recommended that you seek the assistance of a licensed attorney.
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