Dissolve LLC California – Basics To Understand

The question on many people’s minds is how to they can work the Dissolve LLC California procedures. There are many aspects to know if you are planning to dissolve your LLC. Knowing what the rules are for the state, and your situation will make things easier for you.

Notice of Dissolutions

First of all, an LLC is not a legal entity of its own. It is simply a business entity with a registered office in the state. An LLC can only exist for twelve months out of the year. The owners must file a notice of dissolution with the secretary of state. In most cases, the notice can be filed within a month of separation or termination.

Most people are confused about the dissolution notice because they are not sure how to dissolve LLCs in California. To help you out, here are the procedures. First, you have to send the notice of dissolution to the LLC. After being received, the LLC will be required to file a document called a “statement of dissolution.” The dissolution statement must be filed with the Secretary of State after one month from the date of the notice of entry of the Notice of Dissolution. You can check with the California Corporation Commission to see the forms that need to be filed. The exhibits are not printed on the actual Notice of Dissolution.

File Tax Forms

After the filing of the statement of dissolution, it becomes necessary to file a final tax form with the IRS. This final tax form is called an “intestate” tax. There is no longer a need for the company or individual to report its federal income taxes on its public records. This is also the last step before transferring ownership of the business to someone else. The person who takes over the LLC’s shares must buy out the shares of the LLC and then report the purchase price of those shares on the appropriate forms.

How to dissolve LLCs is not a very difficult process if everything has been done correctly. You may want to consider getting professional help from an accountant or an attorney to handle this process since it involves a great deal of money that should be adequately taken care of by them. These are some of the basic things that would make the Dissolve LLC California process more manageable for you and would keep you in control throughout the process.