Dissolving an LLC in San Diego requires many steps to make sure the business is closed and any and all resulting sources of potential liability are extinguished. It is important to ensure the full and proper dissolution of the LLC in order to protect it’s members or owners from future liabilities.
Your San Diego Business Attorneys at the Watkins Firm
Your San Diego business attorneys at the Watkins Firm have supported LLC owners for more than 40 years. There are many reasons why an LLC may need to cease operations and dissolve the corporate entity. Our small business attorneys work with you to make sure business is properly concluded and the LLC is dissolved so that you are prepared to move forward into the next opportunity.
In many cases we are able to help an acquisition or asset purchase to generate value out of the existing LLC’s assets and business operations. In some cases, the LLC simply needs to be dissolved, and our focus is to protect the personal assets of the members while concluding the affairs of the company.
The Steps for Dissolving an LLC in San Diego
There are many steps in the process of dissolving an LLC in San Diego and Southern California. The decision by the members of the LLC must represent either a majority vote or unanimous consent, based upon the terms of the LLC operating agreement. There are forms which must be filed with the California Secretary of State (Form LLC-3) as well as associated filing fees. You must resolve all outstanding liabilities or litigation, conclude business operations, liquidate assets, retire as much debt as possible, and then distribute any remaining equity to the members per the operating agreement or the laws that govern the LLC in question.
Notification must be provided to appropriate creditors, and any obligations or outstanding debts should be completely resolved.
Tax reports must be completed and there are final filings with State and federal agencies. This includes any and all existing taxes, fees, penalties and interest. It is wise to obtain certification from various tax agencies to demonstrate the completion of this work. It will be important to post a public notice and ensure cancellation of any permits, business licenses and other recurring subscriptions or debts the LLC might owe.
Our work together will ensure that all is done to bring the best result possible while dissolving an LLC in San Diego to ensure that no creditor may pursue your personal assets now or in the future. If you are a member in an LLC or own controlling interest and wish to learn more about closing down the operations of your LLC or corporation we invite you to review our podcast Episode 19 – Your Business Attorney is a Valuable Partner as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
