How to Dissolve an LLC in Maine | LLC Closing Guide

To dissolve a limited liability company one has to take up a set of required steps. In Maine, 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 Maine, 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 a Maine LLC (domestic or foreign) you must have an operating agreement. The first step towards the dissolution of Maine 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 Maine LLC.

How to Dissolve an LLC in Maine

Dissolution of Maine LLC requires three broad procedural steps. Having an Maine LLC Operating agreement, close all the tax accounts, and finally submit the Articles of Dissolution form to the Maine Secretary of State.

Step 1: Follow Your Maine 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. Maine 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 Maine 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 Maine Certificate of Formation, one has to file Maine 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 Maine 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 Maine 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 Maine LLC

Apart from these three steps, no major dissolution rules are there in Maine. 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 Maine includes the formation as well as dissolution fees. To dissolve an LLC in Maine, LLCs have to file an Article of Dissolution. The filing fee is $75. 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 Maine 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 Maine. A registered agent can help you do the needful.

Reasons Behind Dissolving Maine LLC

Maine has a lot of opportunities for an entrepreneur. But if they don’t take care of the business, they will get on the verge of dissolving it. There can be so many reasons for this, and they are all as essential as the other ones. Want to know why would someone get to the verge to dissolve an LLC in Maine? Here, check the following ones,

• It can be because the company directors cannot get to the solution of an issue.
• If the company cannot get better outcomes from the company, it is bound to shut down.
• People want profits, and if the company is regularly getting into debt, it is not good to keep the company going.

Top Businesses in Maine!

It is a great idea to start an LLC in Maine. But if someone is doing it without proper info, then they are doing it wrong. With the help of the facts and figures, it will be possible for the person to know what to do. But the research indeed takes a lot of time. So here, we have done it already for you!

1. Finance: It is an essential sector of a lot of states. But when it is about Maine, then the industry is contributing the most to the economy. With the help of this industry, people are getting jobs, but they are also getting more money. It contributed about $11.53 billion in the GDP and induced growth too.
2. Health care: Health care tends to be a vital industry these days as what it has in treasure keeps a check on the future. It is an industry that comes on the second of the list in the contribution to GDP. The amount totaled to be $8.03 billion, and it is a combination of social assistance and educational services.
3. Government enterprises: People tend to use government services a lot too. They can provide the services at a better price and in good quality too. But even with that, they have made an enormous contribution to the GDP too. The contribution is more than what private or other personal services are providing to the economy. They contributed $6.83 to the GDP, whereas government services contributed $7.69 billion.

Maine LLC Dissolution Review

F.A.Qs

What is the Cost to Dissolve an LLC in Maine

To dissolve an LLC in Maine you need to file the Certificate of Cancellation with the Maine Secretary of State via mail for $75.

For business owners in Maine, the process of dissolving an LLC is an important step that shouldn’t be taken lightly. There are certain costs associated with this process that need to be carefully considered. Understanding the financial implications of dissolving an LLC can help business owners prepare for what lies ahead.

One of the first costs to consider when dissolving an LLC in Maine is the filing fee required by the Secretary of State’s office. This fee can vary depending on the state and can range from a few hundred to a few thousand dollars. Business owners should also be aware that there may be additional fees depending on the circumstances surrounding the dissolution of the LLC.

In addition to the filing fee, business owners should also keep in mind any outstanding debts or obligations that the LLC may have. These could include debts to creditors, outstanding lease agreements, or employee salaries. Resolving these financial obligations can be a costly process and should be factored into the overall cost of dissolving the LLC.

Another cost to consider is the cost of legal advice. Dissolving an LLC can be a complex legal process that requires careful attention to detail. Seeking the advice of a qualified attorney can help ensure that the process is done correctly and efficiently. While legal fees can be an added expense, they are often a necessary investment in order to properly dissolve the LLC.

Business owners should also be aware of any tax implications associated with dissolving an LLC. Depending on the structure of the business and its financial situation, there could be tax consequences that need to be addressed. Consulting with a tax professional can help business owners navigate these intricacies and ensure that they are in compliance with all state and federal tax requirements.

Overall, the cost to dissolve an LLC in Maine can vary depending on a variety of factors. Business owners should carefully consider all of the financial implications before making the decision to dissolve their LLC. By understanding the costs involved and planning accordingly, business owners can take the necessary steps to dissolve their LLC in a smooth and efficient manner.

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 Maine. If you have any query do let us know in the comment box.