Since I was getting hit with extra fees (and only being notified when the fees have reached the maximum) and was very frustrated by the whole process, I’ve decided to close my LLC, which I’ve had for a few years.
I think I’ve finally nailed down the process and I know what I need to file, but I’ve been so turned off by the whole thing and they are so slow to file any paperwork, that I am making a change now so that I don’t have to deal with it in the future.
Of course that means learning about how to close the LLC, so I did some investigation, and as it turns out, closing an LLC is not all that easy and takes a bit of time.
The Process I’m Taking To Close My LLC
The first step is making sure that all paperwork has been filed. I am not going to operate it for 2014, so everything I am filing is for the 2013 tax year. The easiest part is filing my 2013 form as I always do, the only change being an extra box checked to indicate that this will be my final return. No problem, I don’t owe any additional tax (just the whopping $800 I paid back in April 2013).
The only other step I really need to take to close the LLC is file one extra form with my Secretary of State, which is just one sheet of paper with some basic information. Sounds easy enough, right?
Leaving The Business Open, But Closing The LLC
Since I am not closing the business, just the LLC, I have to make several changes, which is where most of the work comes in. I use several services and each has a different requirement, so it gets a bit complicated.
First, I needed to get a new EIN from the IRS, which takes a couple of minutes.
Next, I had to change the information on file with PayPal. This took a little time to call up and then send them a fax with my new EIN and a copy of my driver’s license.
I have my individual 401(k) set up through Vanguard, but instead of simply changing the name and EIN, I had to open up a completely separate account. This wasn’t a terrible process because I had submitted the same paperwork when I originally opened the individual 401(k), but it took awhile to get everything set up (and it was 8 pages of information that I had to fill out and send in).
Once I completed that, I had to close the original 401(k), which was another set of paperwork. I wish there was a simple way to just change the basic information (because that’s all that’s changing), but nope
Phew, that’s what it takes to really close my LLC. I hope I don’t have to go through all that work again!
I did a lot of work to see if an LLC was worth pursuing, and my preliminary research indicated that there just wasn’t the value to be had. Good luck getting your situation resolved.
Congrats on getting through all of that paperwork. My husband and I are still a sole proprietorship since we also looked into the benefits of an LLC for us and it just wasn’t there for us yet…