how to close an llc in california

Closing an LLC in California involves several steps and requirements. Here's a detailed explanation of how to do it:

  1. Unanimous Consent: First, you need to obtain the unanimous consent of all LLC members to dissolve the company.
  2. File Articles of Dissolution: Next, you will need to file Articles of Dissolution with the California Secretary of State. This can be done online or by mail. You will need to provide information about your LLC, including its name, the date of dissolution, and a statement that all debts, obligations, and liabilities have been taken care of.
  3. Pay Final Taxes: You will need to make sure all final tax returns are filed and any outstanding taxes are paid.
  4. Close Business Accounts: Close all business accounts and cancel any business licenses or permits that the LLC may have obtained.
  5. Notify Creditors and Settle Debts: Notify creditors of the LLC's dissolution and settle any remaining debts or obligations.
  6. Notify Employees and Close Payroll Accounts: If the LLC has employees, notify them of the dissolution and close any payroll accounts.
  7. Notify IRS and Franchise Tax Board: You will need to notify the IRS and the California Franchise Tax Board of the LLC's dissolution and file final tax returns.
  8. Cancel Business Contracts: Cancel any remaining business contracts or leases.
  9. Final Distribution of Assets: Finally, distribute any remaining assets to the LLC members according to the LLC's operating agreement.

It's important to follow all the necessary steps to properly close an LLC in California. If you're unsure about any of the requirements, it's a good idea to consult with a legal or financial professional to ensure everything is done correctly.

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