How to Dissolve an LLC in Idaho

Dissolving a business often involves complex procedures. However, for a limited liability company in Idaho, dissolving it takes a handful of paperwork. When an LLC is formed in Idaho, the owner(s) draft the operating agreement. If the owner(s) decide to dissolve the business, the dissolution takes place following the articles mentioned in the operating agreement.

In this article, LLCBuddy editors shared the ins and outs of dissolving an LLC in Idaho. LLCs must file the Articles of Dissolution with the Idaho Secretary of State like the formation certificate was filed at the time of forming an LLC in Idaho. It takes a few days to process and a handful of fees to be paid to the SOS. Many people hire a professional service to do the paperwork to process it hassle-free.

At the time of forming an LLC, an operating agreement draft must be written. Generally, the process of dissolution takes place following the operating agreement (read: Idaho LLC operating agreement). Before the dissolution process, there are a few things to consider in the LLC.

First, make sure all the members of the LLC agree to dissolve the business. Once all the members are ready, their consent should be recorded via voting. After casting their vote in favor of the dissolution, the legal process must be started.

Dissolution of Idaho LLC requires three broad procedural steps. Having a Idaho LLC Operating Agreement, closing all the tax accounts, and finally submitting the Articles of Dissolution form to the Idaho Secretary of State.

Step 1: Follow the LLC Operating Agreement in Idaho

When you have started an LLC as a business entity, then there is an operating agreement that is formed. There are complete details of how the company will function and grow in that operating agreement, which acts as a comprehensive guide. There is also a dissolution process, which is added to your agreement. The common dissolution steps that almost every LLC follows are:-

First of all, the dissolution vote will take place among the LLC members in the dissolution meeting. If the majority is with the YES, then the process goes into legal proceedings.

All the dissolution votes will be noted down and recorded with the minutes of the meeting or a consent form.
After that, a formal date for dissolving the LLC will be decided.
The next step is counting the LLC assets and dividing them among the stakeholders and members accordingly.
Finally, the creditors of the business are notified, and the debts of the business are settled.

This is a general process. However, it is strongly recommended to seek professional help to avoid any complications when it comes to terminating an LLC in Idaho.

Get a Professional Agent Service

When it comes to a limited liability company dissolution, it is important to get professional help. Idaho registered agent will guide you with everything you need to close your limited liability company. While choosing a registered agent make sure they have a physical street address in the state. A professional service provider helps you to file the Article of Dissolution and close your various tax accounts without any hassle. Below are the best LLC services in Idaho that we strongly recommend for you.

LLC Service	Our Rating & Pricing	Top Features	Learn More
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Step 2: Close All Tax Accounts

Every action that an official business takes is legally bound to some minimum business taxes. For that, various accounts, especially business entity tax accounts, are maintained by the state government with the help of various departments. You should consider all the taxes that you have paid for your LLC’s duration and make a list of them.

You must contact all government entities and clear the amount of outstanding taxes due by the date you have decided to dissolve. All the taxes must be paid in advance so that you don’t face any issues in the process of shutting down your LLC.

Some of the common taxes that limited liability companies have to pay are:

Unemployment insurance tax
Employee withholding tax if your LLC has employees.
If your LLC is engaged in selling taxable goods then they are liable to pay the sales and use tax.

Most of these taxes are normally filed, but some departments require official paperwork, without which it is impossible for the business to close their accounts. Apart from business taxes, federal taxes, personal income taxes, and franchise taxes are to be considered. For the franchise taxes, a franchise tax form is required. That is why the LLC owner should go through the sales tax guide and hire an accounting service.

Tax clearance

While dissolving the Idaho LLC, the owner is not required to obtain a tax clearance certificate. However, if you have filed federal taxes, then you must go through the final return option on your IRS form.

The IRS form for the LLCs that are classified as partnerships is Form 1065, and those LLCs who have registered themselves as corporate should check IRS Form 1120.

BOI Reporting

If you’re going to dissolve your LLC this year, make sure to update your BOI reporting. From January 1, 2024, the Financial Crimes Enforcement Network (FinCEN) implied a rule to all businesses, including LLCs in Idaho to file the BOI Report. The Beneficial Ownership Information (BOI) in Idaho is a report that states about in and out of the company. This report must be up-to-date and submitted to the FinCEN before you proceed to the dissolution.

Step 3: File Articles of Dissolution

There is a list of dissolution documents that you, as an LLC owner, have to file. Once these articles are filed, the legal existence of the LLC will be over. Like a Idaho Certificate of Organization, one has to file Idaho LLC Certificate of Organization. The dissolution procedure and filing the articles of dissolution form is very easy and is discussed below.

First of all, the LLC owner(s) has to file the Article of Dissolution. There are multiple methods of filing available, such as filing by mail, in-person drop, or/and online filing.
You can follow the filing instructions on the official portal so that the steps for dissolution will be easier to complete.
For offline filing, LLCs must download the form and submit it to the Idaho Secretary of State physical office along with the state filing fee.
If you want to dissolve Idaho Foreign LLC then look for the Foreign LLC Dissolution process.
You must fill in all the important and legal information in the form, so you should be extra careful.
After filling in all the important information, you must choose the mode of payment you want to use to pay the LLC dissolution filing fees.
After filling in every detail, one should submit the form through an official mail address and make a payment.

Filing	Forms and Details
Online Applications	Sign-in to SOS
Offline Applications	Statement of Dissolution
SOS Contact (if offline application is available)	Office of the Secretary of State, 450 N 4th Street, P.O. Box 83720, Boise, ID 83720-0080
Filing Time	1 week or 7 working days
Filing Fee	$20 for manual filing. Additional $40 for expedited filing and $100 additional for same day filing.

The LLC you own is dissolved, and you are free from all the liabilities linked with the LLC and its taxes. A copy of both original articles and recorded articles should be submitted in front of the probate judge. Now it’s his call whether he accepts your expedited dissolutions or not.

Points to Be Noted When Dissolving an LLC in Idaho

Apart from these three steps, no major dissolution rules are there in Idaho. However, there are some other tasks one has to keep in mind while dissolving an LLC legally.

Winding Up

Some purposes of LLC require some attention even after dissolution, known as winding up. The task of winding up includes.

For a certain period, the property of a business requires preservation.
If there is any civil case against the LLC, then the owner needs to finish them.
Settle all the existing disputes of LLC.
Transfer all the property of the LLC to the names of partners.
Release all the liabilities that the LLC owes to others.
Rightful distribution of all the assets among members, according to their percentage of partnerships.

Cost of Dissolving LLC

LLC costs in Idaho include the formation as well as dissolution fees. To dissolve an LLC in Idaho, LLCs have to file an Article of Dissolution. The filing fee is $20 for manual filing. Additional $40 for expedited filing and $100 additional for same day filing.. The details are mentioned in the articles of dissolution filing form. Following are the ways to pay for the dissolution,

You can select a payment pick-up option.
There is an option for direct account transfer through your prepaid accounts.
LLC owners can also use their Credit cards, providing their complete details and types. Along with that, an original signature is required to authorize the transaction the state will make.

After Dissolving Your LLC

After you dissolve an LLC in Idaho, you can reinstate or revive the same within a given time. In Idaho, the LLC name will be available up to 6 months. After this, the name will be available to other LLCs. Besides, you might revive or reinstate the LLC in Idaho if that is available. According to the Idaho SOS, you can revive your LLC within 10 years.

Reasons Behind Dissolving an LLC in Idaho

People always think they can leave the company without any notice and there will be no issue. But if you have an LLC that you created with a legal obligation, it needs to be ended that way. Yes, if someone will dissolve an LLC in Idaho, they will have to do it while taking care of the government. For dissolving the company, there is always a reason. The reason can be voluntary or involuntary too. Let’s get to know about the involuntary reasons,

If the company was caught doing illegal business.
If the company’s member died due to some reason or went bankrupt.
The dissolution will be mandatory if the assets of the business are used unwisely.
If the time being of the company was already determined in the will, then the company will go into dissolution at that time.

Top Businesses in Idaho

With the population of 1,920,562, Idaho is one of the favorable places to start an LLC. According to several reports, starting an LLC for Real Estate can be profitable as various places in the state showed steady growth in this business over the past few years. On the other side, based on the city or region you’re going to start your LLC, you can decide the type of business to start. Following are the top 5 businesses you can start in Idaho.

Real Estate
Outdoor Recreation
Agriculture and Food Production
Advanced Manufacturing
Vacation Rentals

Idaho LLC Dissolution Review – A Quick Recap

Here’s a recap of the steps you must follow when dissolving your Idaho LLC. Click on the steps in this list if you want to read the full details.

Follow Your Idaho LLC Operating Agreement: Remember that when you started, you created an operating agreement. Use this agreement as a guide in proceeding with the dissolution of your LLC.
Close All Tax Accounts: Make sure you close all your tax accounts to avoid incurring further costs.
File Certificate of Organization: File the article of dissolution to make it known to the state where your LLC operates that you are indeed no longer in business.

FAQs

What is the process for dissolving an LLC in Idaho?

To dissolve an LLC in Idaho, you must file Articles of Dissolution with the Idaho Secretary of State.

How much does it cost to dissolve an LLC in Idaho?

The filing fee for dissolving an LLC in Idaho is $30.

Do I need to notify creditors before dissolving my LLC in Idaho?

Yes, you are required to notify creditors of your intent to dissolve the LLC in Idaho.

Are there any specific requirements for notifying creditors when dissolving an LLC in Idaho?

Yes, you must provide written notice to all known creditors of the LLC in Idaho.

How long does it take to dissolve an LLC in Idaho?

The process of dissolving an LLC in Idaho can take several weeks to complete, depending on various factors.

Can I dissolve my LLC in Idaho if it has outstanding debts?

Yes, you can dissolve your LLC in Idaho even if it has outstanding debts, but you must settle those debts before the dissolution is finalized.

What happens to my LLC’s assets and liabilities when I dissolve it in Idaho?

When you dissolve an LLC in Idaho, the assets are distributed to the members according to their ownership interests, and the liabilities are paid off.

Do I need to file a final tax return for my LLC in Idaho when I dissolve it?

Yes, you are required to file a final tax return for your LLC in Idaho when you dissolve it.

Can I reinstate my dissolved LLC in Idaho?

Yes, you can reinstate a dissolved LLC in Idaho by filing a Reinstatement Application with the Idaho Secretary of State.

What are the consequences of not properly dissolving an LLC in Idaho?

Failing to properly dissolve an LLC in Idaho can leave you personally liable for any ongoing obligations and debts of the LLC.

Do I need to cancel my LLC’s business licenses and permits when dissolving it in Idaho?

Yes, you should cancel all business licenses and permits of your dissolved LLC in Idaho.

Can I dissolve my LLC in Idaho if I am in the process of a legal dispute or lawsuit?

It is recommended to resolve any legal disputes or lawsuits involving the LLC before proceeding with the dissolution in Idaho.

What is the deadline for filing the Articles of Dissolution in Idaho after deciding to dissolve an LLC?

There is no specific deadline, but it is recommended to file the Articles of Dissolution as soon as possible after deciding to dissolve the LLC in Idaho.

Will the Idaho Secretary of State provide a Certificate of Dissolution after the LLC is dissolved?

Yes, the Idaho Secretary of State will issue a Certificate of Dissolution once the LLC is successfully dissolved.

Can I dissolve my LLC in Idaho online?

Yes, you can file the Articles of Dissolution online through the Idaho Secretary of State’s website.

Do I need to notify the IRS when dissolving my LLC in Idaho?

Yes, you should notify the IRS by filing a final tax return and closing the EIN associated with the dissolved LLC in Idaho.

Can I transfer my LLC’s assets to another entity before dissolving it in Idaho?

Yes, you can transfer the assets of your LLC to another entity before dissolving it in Idaho, but the transfer must be done legally.

Is there a specific form or template for drafting the Articles of Dissolution for an Idaho LLC?

Yes, you can find a template for the Articles of Dissolution on the Idaho Secretary of State’s website.

What information is required in the Articles of Dissolution for an Idaho LLC?

The Articles of Dissolution for an Idaho LLC must include the name of the LLC, the date of dissolution, and a statement that all debts and obligations have been paid or provided for.

Can I dissolve my LLC in Idaho without a vote of the members?

The decision to dissolve an LLC in Idaho usually requires a vote of the members as specified in the operating agreement or state laws.

What is the difference between a voluntary dissolution and an administrative dissolution in Idaho?

A voluntary dissolution is initiated by the members of the LLC, while an administrative dissolution is done by the state due to noncompliance or other reasons.

Can I dissolve my LLC in Idaho if it is currently inactive and not conducting any business?

Yes, you can dissolve an inactive LLC in Idaho by following the proper dissolution procedures.

Do I need to publish a notice of dissolution in a newspaper when dissolving my LLC in Idaho?

No, there is no requirement to publish a notice of dissolution in a newspaper when dissolving an LLC in Idaho.

Will dissolving my LLC in Idaho affect my personal liability protection?

Dissolving your LLC in Idaho will not affect your personal liability protection for any debts or obligations incurred by the LLC while it was active.

Can I dissolve my Idaho LLC if there are pending lawsuits against it?

It is advisable to resolve all pending lawsuits against the LLC before dissolving it in Idaho to avoid any complications.

Is there a waiting period after filing the Articles of Dissolution before my LLC is officially dissolved in Idaho?

The Idaho Secretary of State will process the dissolution paperwork, and once it is approved, your LLC will be officially dissolved.

Can I dissolve my Idaho LLC if it has outstanding tax obligations?

Yes, you can dissolve your Idaho LLC even if it has outstanding tax obligations, but you must fulfill those obligations before finalizing the dissolution.

Will I need to notify employees, customers, and vendors about the dissolution of my Idaho LLC?

It is recommended to notify employees, customers, and vendors about the dissolution of your Idaho LLC to avoid any misunderstandings or legal issues.

What should I do with the LLC’s records and documents after dissolving it in Idaho?

You should keep the LLC’s records and documents for a certain period as required by law after dissolving it in Idaho.

What are the filing fees to dissolve an LLC in Idaho?

The filing fee to dissolve an LLC in Idaho is $20.

In Conclusion

Dissolving a business is not an easy task as a lot of homework is involved with the process. The official process might have only a few steps, however, before and after dissolving the LLC, there might be a lot of other tasks. In this case, it is highly recommended to get a professional service. If you are looking to file an LLC at $0, then ZenBusiness is your answer.

Limited liability companies reduce owners’ personal liability. Having an LLC is quite cost-effective. However, if it is required to close down the business, then the dissolution process should be done legally. This article shared the general steps. Let us know if you have any queries.