How to Dissolve an LLC in Idaho | LLC Closing Guide

To dissolve a limited liability company one has to take up a set of required steps. In Idaho, if you and the members of the LLC want to discontinue business, then it is necessary to dissolve their business legally to avoid any administrative and legal consequences. To dissolve an LLC in Idaho, you are required to submit a complete Article of Dissolution to the Secretary of State. Before submitting the Article of Dissolution, one must follow the operating agreement.

If you have an Idaho LLC (domestic or foreign) you must have an operating agreement. The first step towards the dissolution of Idaho LLC is to follow the operating agreement. There are some points to be noted before proceeding with the official paperwork. At first, make sure all the members of the LLC are agreed 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. Here are the steps to address for dissolving Idaho LLC.

How to Dissolve an LLC in Idaho

There comes a time when a business has to cease operation for some reason. As such, it is necessary Dissolution of Idaho LLC requires three broad procedural steps. Having an Idaho LLC Operating agreement, close all the tax accounts, and finally submit the Articles of Dissolution form to the Idaho Secretary of State.

Step 1: Follow Your Idaho LLC Operating Agreement

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.

Get a Professional Agent Service

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

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 account, 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 until the date you have decided for dissolution. All the taxes must be paid in advance so that you don’t face any issues in the further 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. If you want to do the accounting yourself or make accounting easy, try FreshBooks.

Tax clearance

While dissolving the Idaho LLC, the owner does not require 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 LLC that are classified as partnerships is form 1065, and those LLC’s who have registered themselves as corporate should check IRS form 1120.

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 an Idaho Certificate of Formation, one has to file Idaho LLC Articles of Dissolution. 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 file by mail, in-person drop, or/and online filing. To get the application form you need to visit the Secretary of State Website of Idaho state.
• You can follow the filing instruction on the official portal so that the steps for dissolution will be easier to complete.
• In that particular SOS website, the LLC owner has to look for the Domestic LLC Articles of Dissolution page.
• If you want to dissolve Idaho Foreign LLC then look for the Foreign LLC Dissolution process.
• There is a form available on this page, which is the article of dissolution you are looking for. You have to download that pdf form and start filling it.
• 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.
• It takes 3-5 business days after filing of articles of dissolution if you are filing it by mail or in-person.

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The LLC you owned 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 that he accepts your expedited dissolutions or not.

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Points to Be Noted When Dissolving Idaho LLC

Apart from these three steps, no major dissolution rules are there in Idaho. However, there are some other tasks one has to keep in mind while dissolving an LLC legally.

Winding Up

There are some purposes of LLC that 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 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 cost in Idaho includes the formation as well as dissolution fees. To dissolve an LLC in Idaho, LLCs have to file an Article of Dissolution. The filing fee is $20. The details are mentioned on the second page of the article dissolution filing form. Following are the ways to pay for the dissolution,

• You can select a payment pick-up option.
• There is an option of 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 state will make.

After Dissolving Your LLC

After you formally dissolve your LLC, your business name will not be reserved anymore. Any other business entity will be eligible to use your Idaho LLC name immediately after 120 days of dissolving your LLC. On the other hand, if you have a foreign LLC in other states, then you must comply with the SOS of the state after the dissolution of your LLC in Idaho. A registered agent can help you do the needful.

Reasons Behind Dissolving Idaho LLC

There are many reasons why someone would want to dissolve a business. But what is essential is that they do it in a proper way. With the help of appropriate and legal practice, the operations will be legal and lead to better opportunities. But the question is about why would someone want to dissolve an LLC in Idaho. We have the reasons right here,

• The company is not able to make better money from it.
• The debts keep on increasing, and there is no way out.
• The owners found a better niche for the new company.
• The demise of a partner can be a reason.
• The completion of the goal of the company.

Top Businesses in Idaho!

Idaho is a prominent place for a lot of things. It is the one that has a lot of industries, and if someone wishes to start an LLC in Idaho, they are on the right road. The road to a successful business is proper research and an acceptable way of running it. So what are the adequate industries for the business here in Idaho? Check them here!

1. Finance: There is no state today that doesn’t provide finance, insurance, and rental services. With the help of this industry, the basic growth of a state like Idaho can do wonders. And as a matter of fact, it is already doing a lot of wonders. The sector contributed $12.46 billion to the Gross Domestic Product of the state also. It is the biggest factor and impacts a lot on the economy also.
2. Manufacturing: If someone wants to use a product and find raw material, they need manufacturing services. This industry gives motive to the use of raw material and is a crucial one too. When it comes to Idaho, the top manufactured product is computer components lead. There are others, too, and that is why it contributes $8.66 billion to GDP too.
3. Agriculture: This specific sector is the backbone of any economy. With the help of this sector, the state was able to grow a lot, and it is known for generating the top 5 dairy products. Those products are the ones that are needed in daily life and cannot be substituted. It represents the GDP by $5.93 billion, which is not a low amount.

Idaho LLC Dissolution Review

F.A.Qs

What is the Cost to Dissolve an LLC in Idaho

To dissolve an LLC in Idaho you need to file the Statement of Dissolution with the Idaho Secretary of State via mail or in person for $20 or online for free of cost.

The first cost to consider when dissolving an LLC in Idaho is the filing fee with the Secretary of State. This fee is generally minimal compared to the cost of forming the LLC initially, but it is still an expense that should not be overlooked. Additionally, there may be other state fees or required forms specific to Idaho that need to be completed during the dissolution process.

Another cost to be aware of when dissolving an LLC in Idaho is any outstanding debts or liabilities the business may have. These financial obligations must be settled before the LLC can be officially dissolved. This can include paying off creditors, finalizing contracts, or even liquidating assets to cover any outstanding debts. Not addressing these financial responsibilities can lead to legal repercussions for the business owners.

Additionally, taxation considerations should be factored into the cost of dissolving an LLC in Idaho. Depending on how the business is structured or any income or assets involved, there may be tax implications when closing down the LLC. Consulting with a tax professional or accountant can help navigate any potential tax consequences and ensure that the business is in compliance with all tax obligations.

It is also important to consider any contractual agreements or obligations the LLC may have with partners, clients, landlords, or suppliers. Terminating these contracts early or abruptly can result in penalties or legal actions that can add to the overall cost of dissolution. Taking the time to review and properly address these contractual obligations can help minimize any financial impacts during the dissolution process.

Perhaps the most significant cost to consider when dissolving an LLC in Idaho is the time and effort required to complete the process. Dissolving an LLC involves a series of administrative tasks, including filing paperwork, notifying stakeholders, and closing out business operations. This can be a time-consuming process that requires careful attention to detail to avoid any complications or delays.

Overall, the cost to dissolve an LLC in Idaho can vary depending on the specific circumstances of the business. By understanding and preparing for the financial implications of dissolution, business owners can ensure a smooth and efficient process that minimizes any unexpected financial burdens. Seeking the guidance of legal and financial professionals can help navigate the complexities of LLC dissolution and ensure that all necessary steps are taken to dissolve the business properly.

In Conclusion

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. Get a professional service to get everything done. We hope this article helps you to close your LLC in Idaho. If you have any query do let us know in the comment box.