How to Legally Terminate a Limited Liability Company

How to Legally Terminate a Limited Liability Company. When the members of a limited liability company (LLC) decide to close their business, there are formal steps to take in order to legally terminate the company. Just as you legally formed your company via your Secretary of State, so too must you terminate the LLC.

Step

The members of the LLC should vote to terminate the business.

Step

Refer to your operating agreement for the steps that you must take to terminate.

Step

Search your Secretary of State's Web site and download the form to legally terminate the LLC. This is known as the "Articles of Termination."

Step

Rectify any debts or outstanding business. You must sign your name to a document that declares the LLC will have no outstanding bills or business at the time of termination.

Step

Fill out the termination papers for your limited liability company and have the members sign them. The process to legally terminate the LLC should not take more than a day.

Step

Submit the articles of termination to your Secretary of State's office.