How to Dissolve an LLC in Louisiana | LLC Closing Guide

To dissolve a limited liability company one has to take up a set of required steps. In Louisiana, if you and the members of the LLC want to discontinue business, then it is necessary to dissolve their business legally to avoid any administrative and legal consequences. To dissolve an LLC in Louisiana, you are required to submit a complete Article of Dissolution to the Secretary of State. Before submitting the Article of Dissolution, one must follow the operating agreement.

If you have an LLC in Louisiana (domestic or foreign) you must have an operating agreement. The first step towards the dissolution of Louisiana LLC is to follow the operating agreement. There are some points to be noted before proceeding with the official paperwork. At first, make sure all the members of the LLC are agreed 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. Here are the steps to address for dissolving Louisiana LLC.

How to Dissolve an LLC in Louisiana

Dissolution of Louisiana LLC requires three broad procedural steps. Having a Louisiana LLC Operating agreement, close all the tax accounts, and finally submit the Articles of Dissolution form to the Louisiana Secretary of State.

Step 1: Follow Your Louisiana LLC Operating Agreement

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.

Get a Professional Agent Service

When it comes to a limited liability company dissolution, it is important to get professional help. The Louisiana 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 we strongly recommend for you.

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 account, 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 until the date you have decided for dissolution. All the taxes must be paid in advance so that you don’t face any issues in the further 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. If you want to do the accounting yourself or make accounting easy, try FreshBooks.

Tax clearance

While dissolving the Louisiana LLC, the owner does not require 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 LLC that are classified as partnerships is form 1065, and those LLC’s who have registered themselves as corporate should check IRS form 1120.

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 Louisiana Articles of Organization, one has to file Louisiana LLC Articles of Dissolution. 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 file by mail, in-person drop, or/and online filing. To get the application form you need to visit the Secretary of State Website of Louisiana state.
• You can follow the filing instruction on the official portal so that the steps for dissolution will be easier to complete.
• In that particular SOS website, the LLC owner has to look for the Domestic LLC Articles of Dissolution page.
• If you want to dissolve Louisiana Foreign LLC then look for the Foreign LLC Dissolution process.
• There is a form available on this page, which is the article of dissolution you are looking for. You have to download that pdf form and start filling it.
• 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.
• It takes 3-5 business days after filing of articles of dissolution if you are filing it by mail or in-person.

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The LLC you owned 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 that he accepts your expedited dissolutions or not.

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Points to Be Noted When Dissolving Louisiana LLC

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

Winding Up

There are some purposes of LLC that 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 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 cost in Louisiana includes the formation as well as dissolution fees. To dissolve an LLC in Louisiana, LLCs have to file an Article of Dissolution. The filing fee is $5. The details are mentioned on the second page of the article dissolution filing form. Following are the ways to pay for the dissolution,

• You can select a payment pick-up option.
• There is an option of 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 state will make.

After Dissolving Your LLC

After you formally dissolve your LLC, your business name will not be reserved anymore. Any other business entity will be eligible to use your Louisiana LLC name immediately after 120 days of dissolving your LLC. On the other hand, if you have a foreign LLC in other states, then you must comply with the SOS of the state after the dissolution of your LLC in Louisiana. A registered agent can help you do the needful.

Reasons Behind Dissolving Louisiana LLC

Some so many people like to have their own business for their career. But is it always going to go well? No. it is not like everyone will get the perfect LLC, and they might also have to dissolve an LLC in Louisiana. There can be many reasons for that. Some can be voluntary, and some can be involuntary too. Yes! If a company is in the dissolution process, it is very much possible that it is involuntary. Here are the reasons for that,

• If the company has failed to file the critical taxes. 
• The directors of the company have been indulging in fraudulent activities. 
• The assets of the company were not used for the company, or they were wasted. 
• There is an issue, and the owners are not able to get a solution for it. 
• The company is not able to show the legal or registered office. 

Top Businesses in Louisiana!

If we talk about the economy of the state of Louisiana, then the main source was Agriculture. But if we look into it, it is not the same. There are many other industries, but they are far important to the state. So if someone wishes to start an LLC in Louisiana, they should go for the below-mentioned industries. 

1. Manufacturing: GDP is an important aspect of a state, and it tells us all what provides economic strength to the state. In the case of Louisiana, it is the sector of manufacturing. This sector represented the amount of $56.01 billion to the total, and it is a significant amount for sure. 
2. Insurance and real estate: There is a need for insurance for many things, and people keep a check on this service. Which makes it an important one. And if we take a look at these financial services, they indeed make a lot of money. And that money is also shared in the GDP too. This industry contributes $32.45 billion. 
3. Industry of social services: Many people need the service for assistance in a lot of things. It can be educational services, social assistance, health care, or others. This industry is for the good of the people in the state, but as we see, it is good for the economy. It has contributed $19.91 billion to the Gross Domestic Product, and it is enough amount too.

Louisiana LLC Dissolution Review

What is the Cost to Dissolve an LLC in Louisiana

To dissolve an LLC in Louisiana you need to file the Certificate of Dissolution with the Louisiana Secretary of State via mail, fax, online or in person for $100.

When it comes to operating a business, in Louisiana or anywhere else, it’s imperative to understand all the costs involved – not just when it’s time to get started, but when it’s time to end things as well. An LLC may be dissolved for any reason, be it voluntary or involuntary, and knowing the costs involved can be essential to a business owner’s peace of mind and overall financial stability.

First, it’s important to note that the process of dissolving an LLC varies from state to state based on their specific laws and regulations. In Louisiana, the designated state agency responsible for LLCs and other business entities is the Secretary of State. Generally, the process of dissolving an LLC in Louisiana will involve officially filing dissolution documents with the SOS, notifying all creditors, and settling any remaining debts or outstanding obligations.

Costs associated with dissolving an LLC in Louisiana can vary depending on the size of your business and the specific steps you need to take. Some of the costs associated with dissolving an LLC may include fees for filing the necessary paperwork, fees for the final tax return that must be filed, and ongoing costs associated with settling debts owed to creditors. If your LLC has a registered agent, you may also be responsible for ongoing fees to keep that agent in place while the process is ongoing.

One important cost of dissolving an LLC to keep in mind are the penalties that may be incurred if you do not properly notify creditors and other stakeholders about the pending dissolution of your company. Fines can be significant for LLCs that do not follow state-specific protocols and laws, so it’s essential to understand those protocols before beginning the dissolution process.

Another crucial factor to keep in mind when considering the cost of dissolving an LLC in Louisiana is the potential effect that the process could have on your personal finances. Business owners who dissolve LLCs are not automatically immune to liability for debts that remain in the LLC’s name. Any outstanding obligations that are not dealt with at the time the LLC is dissolved could potentially be passed on to the business owners themselves if a court deems them legally liable. This can be devastating for the personal finances of business owners, highlighting the importance of taking any and all steps necessary to properly terminate the LLC in a timely and per the law manner.

While the process of dissolving an LLC in Louisiana can indeed be complicated, it doesn’t necessarily have to be cost-prohibitive. In general, taking the proper steps ahead of time to understand what is required and consulting with professionals who specialize in this area can help ensure that you are well-prepared and well-informed as you begin the process. With the right planning and proper execution, it’s entirely possible to dissolve an LLC without getting into financial trouble along the way.

Overall, while the cost of dissolving an LLC in Louisiana can seem daunting, it is essential to comply with all the state’s rules and regulations to make the process as smooth and hassle-free as possible. Given the long-term benefits and peace of mind that properly dissolving an LLC can bring, it is a necessary investment and imperative undertaking for business owners of every size and endeavor.

F.A.Qs

In Conclusion

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. Get a professional service to get everything done. We hope this article helps you to close your LLC in Louisiana. If you have any query do let us know in the comment box.