To dissolve a limited liability company one has to take up a set of required steps. In Oregon, 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 Oregon, 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 Oregon LLC (domestic or foreign) you must have an operating agreement. The first step towards the dissolution of Oregon 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 Oregon LLC.
On this page, you’ll learn about the following:
- How to Dissolve an LLC in Oregon
- After Dissolving Your LLC
- Reasons Behind Dissolving Oregon LLC
- Oregon LLC Dissolution Review
How to Dissolve an LLC in Oregon
Dissolution of Oregon LLC requires three broad procedural steps. Having an Oregon LLC Operating agreement, close all the tax accounts, and finally submit the Articles of Dissolution form to the Oregon Secretary of State.
Step 1: Follow Your Oregon 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 Oregon 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.
While dissolving the Oregon 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.
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 an Oregon Articles of Organization, one has to file Oregon 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 Oregon 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 Oregon 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.
Secretary of State
255 Capitol St. NE,
Suite 151 Salem
Filing Fee: $100
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.
Points to Be Noted When Dissolving Oregon LLC
Apart from these three steps, no major dissolution rules are there in Oregon. However, there are some other tasks one has to keep in mind while dissolving an LLC legally.
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 Oregon includes the formation as well as dissolution fees. To dissolve an LLC in Oregon, LLCs have to file an Article of Dissolution. The filing fee is $100. 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 Oregon 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 Oregon. A registered agent can help you do the needful.
Reasons Behind Dissolving Oregon LLC
Some people want their business to thrive, but then they decide dissolution. The issue of dissolution can arise due to a lot of things. But when a person has decided to dissolve an LLC in Oregon, he needs to take it seriously. With the help of serious actions, the person will know what he is doing and legally. It is necessary to legalize the dissolution. Want to know why? Check here,
- If the owners do not provide the reason for dissolution, they will have to pay the taxes.
- There are many business duties towards the government, so the company will have to check it.
- The assets of the company can lose their value if they are not sold under dissolution.
- The government can go for the involuntary dissolution of the company.
Top Businesses in Oregon!
The economy of Oregon allows the people to get the best that they want without any issues. It is all because there is a mix of industries that ensure better jobs for the population too. But if someone wants to start an LLC in Oregon, they can do it just with the right information. The information is vital, and with that, it will be an easy road for the business. Check the facts about top industries below!
- Finance industry: The industry of finance and insurance is all fueled up with the help of different sectors too. It has the primary income from the development of the vacation resorts and also the retirement villages. This way, the industry is getting the money, and it is contributing to the economy too. The amount of $43.92 billion is directly related to the development of the state.
- Manufacturing: The main manufactured product of the state of Oregon is electronic equipment. There are other products, too; they are related to the wood products industry and some to the food processing industry. There is a significant contribution of $33.06 billion to the economy, too, with this industry.
- Professional services: There are different groups of private service provider companies too. It can be healthcare, hospitals, schools, some law firms, and others. With the help of these different companies, the state can get benefit from it. This sector in GDP contributed $29.3 billion.
Oregon LLC Dissolution Review
Time needed: 5 minutes.
Here’s a recap of the steps you must follow when dissolving your Oregon LLC. Click on the steps in this list if you want to read the full detail.
- Follow Your Oregon 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 Articles of Dissolution
File the article of dissolution to make it known to the state where your LLC operates is that you are indeed no longer in business.
What is the Cost to Dissolve an LLC in Oregon
To dissolve an LLC in Oregon you need to file the Articles of Dissolution with the Oregon Secretary of State through mail by paying a filing fee of $100.
There are a number of steps involved in the process of dissolving an LLC. These steps include terminating licenses, paying off all debts, and removing all leases and permits. If you have any questions about the process, consult with a business attorney. They can guide you through the entire process.
Once the business is officially dissolved, the owners can move on to other matters. However, there are certain steps that must be taken to ensure that the process is completed in a timely manner. The Oregon Secretary of State requires a number of documents to be filed. One of them is a copy of the Articles of Dissolution. This document is important because it contains crucial information about the business. It includes the official name of the LLC, the printed and signed names of all members, and the effective date of the dissolution.
Another step is to send legal notifications to all interested parties. You will also need to notify vendors, creditors, and service providers that you are dissolving the business. In addition, you may need to collect final payments. Finally, you will want to contact a qualified service provider for a final closure.
Before you start the dissolution process, you should take the time to make sure that the company’s tax accounts are properly closed. Failure to do this could lead to penalties from the tax agencies. Additionally, you should close any bank accounts or credit cards that are used for your business.
Once you have made these steps, you need to contact the Oregon Secretary of State. Their office will accept your dissolution application by mail, fax, or in person. Depending on the method you use, it will take between one week and two months to process the application. During this time, you may be asked to pay a $100 filing fee. You can also opt to pay this fee using a check or a credit card.
Next, you will need to pay all taxes that you owe to the state of Oregon. Unlike the federal government, the state does not require you to have an IRS tax clearance prior to completing the dissolution process. However, you will need to provide proof of all taxes that you have paid. If your taxes are in arrears, you will need to pay them in advance to prevent future problems.
In addition, you will need to file an official notice of dissolution with the Oregon Secretary of State. They will need your LLC’s name, address, and phone number, as well as the reason for the dissolution. Normally, you can receive a response from them in a few days. Depending on the reason for the dissolution, you may be required to pay a fee.
Finally, you will need to prepare a list of all the taxes that you have paid and all the pending taxes. Ideally, you should pay all of your business’s tax obligations in advance. That way, you won’t have to deal with any problems during the dissolution process.
Yes, in Oregon, there is a fee of $100 to be paid for filing the Articles of Dissolution. Articles of Dissolution must be submitted to the Oregon SOS.
No, there is no requirement of revenue department clearance till the time the SOS of Oregon accepts the dissolution form.
The name will also get deregistered with the dissolution of the LLC. But the name will not be allotted for the next 120 days. After that, if some business wants to name their LLC after the name chosen by you, then it is their choice.
If you have not dissolved your LLC, you are liable for business privilege tax, and if it is not paid on time, you are leveraged with 10% of the amount of tax or $50. After that, the additional penalties will increase by $1 per month. If it goes unpaid for a longer duration, then the chances of seizing your property can also recover the tax.
Yes, if you are dissolving your LLC, you have to pay some amount to the probate judge who was also present during your LLC formation in the probate office. The minimum fee of the judge is $50, which can vary.
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 Oregon. If you have any query do let us know in the comment box.