How to Dissolve an LLC in Washington

Dissolving a business often involves complex procedures. However, for a limited liability company in Washington, dissolving it takes a handful of paperwork. When an LLC is formed in Washington, 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 Washington. LLCs must file the Articles of Dissolution with the Washington Secretary of State like the formation certificate was filed at the time of forming an LLC in Washington. 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: Washington 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 Washington LLC requires three broad procedural steps. Having a Washington LLC Operating Agreement, closing all the tax accounts, and finally submitting the Articles of Dissolution form to the Washington Secretary of State.

Step 1: Follow the LLC Operating Agreement in Washington

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 Washington.

Get a Professional Agent Service

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

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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 Washington 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 Washington to file the BOI Report. The Beneficial Ownership Information (BOI) in Washington 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 Washington Articles of Organization, one has to file Washington LLC Articles 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 Washington Secretary of State physical office along with the state filing fee.
If you want to dissolve Washington 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	Log in to SOS
Offline Applications	LLC Articles of Dissolution
SOS Contact (if offline application is available)	Secretary of State, Corporations Division. P.O. Box 40234
Filing Time	Approximately a month (or 30 working days). In case of expedited filing, it takes one week approx or 7 working days.
Filing Fee	$0 (there is no fee charged for dissolution)

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 Washington

Apart from these three steps, no major dissolution rules are there in Washington. 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 Washington include the formation as well as dissolution fees. To dissolve an LLC in Washington, LLCs have to file an Article of Dissolution. The filing fee is $0 (there is no fee charged for dissolution). 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 Washington, you can reinstate or revive the same within a given time. In Washington, the LLC name will be available up to the time till SOS dissolves the LLC completely. After this, the name will be available to other LLCs. Besides, you might revive or reinstate the LLC in Washington if that is available. According to the Washington SOS, you can revive your LLC within 5 years.

Reasons Behind Dissolving an LLC in Washington

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 Washington, 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 Washington

With the population of 7,999,503, Washington is one of the favorable places to start an LLC. According to several reports, starting an LLC for Agricultural Products 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 Washington.

Agricultural Products
Electric Car Charging Stations
Information Technology Services
Ridesharing
Commercial Fishing

Washington LLC Dissolution Review – A Quick Recap

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

Follow Your Washington 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 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

How do I dissolve an LLC in Washington?

To dissolve an LLC in Washington, you must follow the specific guidelines outlined by the Washington Secretary of State.

What is the first step to dissolve an LLC in Washington?

The first step to dissolve an LLC in Washington is to hold a meeting of the LLC members and vote to dissolve the company.

Are there any specific forms I need to file to dissolve an LLC in Washington?

Yes, you will need to file a Certificate of Dissolution with the Washington Secretary of State to officially dissolve your LLC.

What information is required on the Certificate of Dissolution in Washington?

The Certificate of Dissolution in Washington requires basic information about the LLC, including the name of the company and the date of dissolution.

Is there a fee to dissolve an LLC in Washington?

Yes, there is a filing fee to dissolve an LLC in Washington, which must be paid at the time of submitting the Certificate of Dissolution.

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

The processing time for dissolving an LLC in Washington varies, but it typically takes a few weeks to a few months.

Do I need to notify creditors and settle debts before dissolving an LLC in Washington?

Yes, it is recommended to notify creditors and settle any outstanding debts before dissolving an LLC in Washington to avoid any legal issues.

Can I dissolve an LLC in Washington if the company is still operating?

Yes, you can dissolve an LLC in Washington even if the company is still operating, as long as you follow the required steps for dissolution.

What happens to the LLC’s assets and liabilities when dissolving in Washington?

When dissolving an LLC in Washington, you must first pay off all debts and liabilities before distributing any remaining assets to the members.

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

Yes, it is important to cancel any business licenses and permits associated with your LLC when dissolving in Washington to avoid any penalties.

Can I reinstate a dissolved LLC in Washington?

Yes, you may be able to reinstate a dissolved LLC in Washington by filing a Reinstatement Application and paying any outstanding fees.

What is the deadline for filing a Certificate of Dissolution in Washington after deciding to dissolve an LLC?

There is no specific deadline for filing a Certificate of Dissolution in Washington, but it should be done as soon as possible after the decision to dissolve the LLC.

Are there any tax implications for dissolving an LLC in Washington?

Yes, there may be tax implications for dissolving an LLC in Washington, including the final tax return and potential tax liabilities.

Can I transfer any remaining assets to another LLC when dissolving in Washington?

Yes, you may be able to transfer any remaining assets to another LLC, but it is important to consult with a legal or tax professional before doing so.

Do I need to notify the Washington Department of Revenue when dissolving an LLC?

Yes, you should notify the Washington Department of Revenue when dissolving an LLC to ensure all tax obligations are met.

What happens if I do not properly dissolve my LLC in Washington?

If you do not properly dissolve your LLC in Washington, you may still be liable for taxes, fees, or legal obligations even after the company is inactive.

Can I dissolve my LLC in Washington if there are pending lawsuits against the company?

Yes, you can still dissolve your LLC in Washington if there are pending lawsuits, but it is important to address these legal matters before finalizing the dissolution.

Do I need to notify employees and customers when dissolving an LLC in Washington?

Yes, it is important to notify employees and customers when dissolving an LLC in Washington to avoid any confusion or legal issues.

Can any member of the LLC initiate the dissolution process in Washington?

Typically, the majority of LLC members must vote to dissolve the company in Washington, but the specifics may be outlined in the LLC’s operating agreement.

Do I need to obtain a tax clearance certificate to dissolve my LLC in Washington?

Washington State does not require a tax clearance certificate to dissolve an LLC, but it is recommended to ensure all tax obligations are met before dissolving the company.

Can I dissolve my LLC in Washington if it is in good standing with the Secretary of State?

Yes, you can dissolve your LLC in Washington even if it is in good standing with the Secretary of State, as long as the proper procedures are followed.

Do I need to publish a notice of dissolution in a newspaper in Washington?

There is no requirement to publish a notice of dissolution in a newspaper in Washington when dissolving an LLC, but it may be a good practice to inform the public of the company’s closure.

Can I dissolve my LLC in Washington if it is currently in bankruptcy?

Dissolving an LLC in Washington while it is in bankruptcy may complicate the process, so it is important to consult with a bankruptcy attorney before taking any steps.

Are there any specific requirements for dissolving a foreign LLC in Washington?

Foreign LLCs (those formed outside of Washington) must comply with additional registration requirements when dissolving in the state, so it is important to research and follow the guidelines.

Can I apply for administrative dissolution in Washington if my LLC is not active?

Yes, you can apply for administrative dissolution in Washington if your LLC is not active, but you must follow the specific procedures outlined by the Secretary of State.

What is the difference between administrative dissolution and voluntary dissolution in Washington?

Administrative dissolution is initiated by the state for non-compliance reasons, while voluntary dissolution is when the LLC members choose to dissolve the company in Washington.

Are there any ongoing reporting requirements after dissolving an LLC in Washington?

Once an LLC is dissolved in Washington, there are typically no ongoing reporting requirements, but it is important to retain business records for tax and legal purposes.

Can I transfer my LLC’s assets to a new business entity when dissolving in Washington?

Yes, you may be able to transfer your LLC’s assets to a new business entity when dissolving in Washington, but it is important to follow proper legal and tax procedures.

What is the fee for dissolving an LLC in Washington?

The fee to file a Certificate of Dissolution in Washington is $20.

Can I dissolve an LLC in Washington online?

Yes, you can file for dissolution online through the Washington Secretary of State’s website.

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.