Limited Liability Companies are gaining popularity as more and more
people understand the advantages of registering this kind of business.
But what is an LLC? LLC stands for Limited Liability Company, and is a
legal form of company which provides limited liability to its owners.
Moreover, an LLC can easily fit the needs of a single owner or multiple
owners. In addition, an LLC is more flexible than corporations. The
primary characteristics of these Limited Liability Companies are that it
shares with another corporation in which there is limited
liability.Setting up an LLC is quite simple…first you’ll need to file the
Articles of Organization with the Secretary of State. Next is to draft
the Operating Agreement. If you’re not sure what should be included in
the Operating Agreement, you can find an LLC Operating Agreement sample
online. Third is the select a Registered Agent who will receive important
documents on behalf of the LLC.As they say, every door that opens
eventually closes. Limited Liability Companies are easy to set up, and
are just as easy to close. When closing an LLC, you’ll first need to file
the Article for Dissolution, and of course, fees are usually involved,
but no worries, the cost is not that much. Second, you’ll need to pay off
all the debts the Limited Liability Company has. This includes the
employers, loans and so on.Third is by announcing the closure of your
business. This includes the vendors and all the clients involved in your
business, a small ad in the local newspaper would suffice. Fourth is by
returning the cash reserves owned to the owners or clients. If no money
is left with you, you need to have an agreement on how the money be
divided and be returned. Thus, there is a need to have a lawyer who can
guide you all throughout the process.Next is by notifying the Internal
Revenue Service that the Company is no longer being operated, and file
the required paperwork with the IRS to report final paychecks and others.
You should also report correctly and accurately the sales of the assets,
properties and loans and so forth to the Internal Revenue Service. And
then you’ll need to contact all the countries in which the business is
located and cancel your business license. Lastly, is to file the
appropriate tax return of that certain year.