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What steps do I need to take in Illinois to properly dissolve my business?

Picture of Chris Battis By   ·  1 minute read

To properly dissolve a business in Illinois, there are several steps that need to be taken. Here is a detailed breakdown of what needs to be done:

  1. File Articles of Dissolution: The first step in dissolving a business in Illinois is to file Articles of Dissolution with the Secretary of State. This is a legal document that officially terminates the company's existence. To file this document, the business owner must provide the company's name, identification number, and a statement indicating that the company has been dissolved.

  2. Notify Creditors and Other Stakeholders: Once the Articles of Dissolution are filed, the business owner must provide notice to all creditors and stakeholders that the company has been dissolved. This allows them to make any claims or objections to the dissolution before it is finalized.

  3. Close Business Accounts: All business accounts, including bank accounts and credit lines, must be closed. Any remaining funds should be transferred to a personal account or distributed to shareholders.

  4. Cancel Licenses and Permits: Any licenses and permits that the business holds must be cancelled. This includes registrations with federal, state, and local authorities.

  5. File Final Tax Returns: The business must file final tax returns with the Illinois Department of Revenue and the Internal Revenue Service. This includes corporate income tax returns, employment tax returns, and sales tax returns.

  6. Settle Outstanding Debts and Obligations: The business must pay off all outstanding debts and obligations before it can be officially dissolved. This includes any outstanding loans, leases, and contracts.

  7. Keep Records: The business owner should keep all records related to the dissolution for at least seven years. This includes financial records, tax returns, and any other documents related to the business.

It is important to note that while this is a general overview of the dissolution process in Illinois, there may be specific circumstances or exceptions that could impact the process. It is always best to consult with a licensed attorney for specific legal advice related to your particular situation.