Letting go is never easy, especially after you’ve poured your heart and soul into a business. Still, when your business has run its course, it may be time to close the doors. 

Dissolving your limited liability company(LLC) is an essential process that releases the members from legal and financial liabilities arising from the business. To properly dissolve your Indiana LLC, you follow a set of rules carefully. The steps to dissolution must comply with Indiana state law and follow your LLC’s operating agreement.

This article will guide you on how to dissolve an LLC in Indiana and discuss the best way to tie loose ends.

Understanding LLC Dissolution in Indiana

Limited liability company or LLC dissolution is the administrative closure of a registered business. It is the procedure by which the company ceases to exist as a legal entity. The dissolution of an LLC in Indiana ends members’ legal and financial liability for the company, so the process must be concluded correctly. There are several steps in the process. Follow them all meticulously to avoid complications and member liabilities. 

Why Dissolve an LLC in Indiana?

As many reasons as there are for launching a business, there are reasons why members may decide to dissolve it. These include:

  • The company operations have ceased: If the company is no longer bringing in business or returning a profit, the members may dissolve the LLC. Closing the business avoids the accumulation of any further liabilities.
  • The business is making a loss: The members may close a loss-making business. 
  • The members have irreconcilable differences: Members may decide to close the business if they can’t agree on business matters.
  • The business has reached its goals: If the business was launched for a cause or purpose, members close the company when they achieve the goal. 

How to Dissolve an LLC in Indiana in 7 Steps

Dissolving an Indiana LLC is not difficult but you must complete all the steps in the process, paying careful attention to detail. Here’s how to dissolve an LLC in Indiana. 

1. Review Your LLC’s Operating Agreement

The LLC operating agreement contains the terms and conditions governing your business. The operating agreement should list the requirements for closure, so this is a good starting point for closing your business.  

2. Vote to Dissolve an LLC

Call an LLC member meeting to discuss and approve the dissolution and agree on a dissolution date. Note and record the votes via minutes or agreement form. 

3. File Articles of Dissolution

To formally close your business, you must prepare and file legal paperwork with the Indiana Secretary of State. These documents are known as Articles of Dissolution. They formally terminate the LLC as a business entity in the state of Indiana. You can file the documents online, by mail, or in person. Include a dissolution filing payment of $30

4. Notify Tax Agencies and Pay Remaining Taxes

US businesses must file taxes with various state and federal departments. Before closing your business in Indiana, you must file a final income tax return. You may also have employment and sales and use tax liabilities that you must finalize. Consult a tax professional to ensure that all your taxes are covered. 

In Indiana, you do not need a tax clearance certificate to file for dissolution. If you file federal taxes, you must complete the final return section of your federal return. 

5. Inform Creditors and Settle Existing Debt

Inform your creditors of your intentions to close the business. Reconcile all accounts and pay your invoices or make a settlement arrangement. It may be necessary to leave contact details in case your creditors have any outstanding queries. 

6. Wind Up Other Business Affairs

How you wind up your business affairs will depend on your business. However, there are some common processes. They’re listed below. 

  • Inform suppliers: Let your suppliers know you plan to close business operations. Honor outstanding orders or cancel them if possible. Settle debts.
  • Cancel business licenses: Avoid future costs and penalties. Items like software licenses can incur significant costs. 
  • Terminate employment contracts: Pay all outstanding amounts, termination pay, and benefits. Labor laws and employment contracts will direct you in employee terminations. Get legal advice if necessary. 
  • Close company bank accounts: Inform all financial institutions of your plans for closure, closing outstanding accounts. Have the funds transferred into a current account for distribution.
  • Terminate leases and contracts: Close all leases and contracts and settle according to the contractual agreements. 
  • Dispose of assets: Identify inventory and assets and estimate their value. Create an itemized disposal plan. You may choose to sell, auction, or donate the assets. 
  • Arrange for document disposal or storage: Understand the document retention regulations. Sort documents for disposal or storage according to retention requirements. Arrange storage for retained documents, like employee tax records, and dispose of the rest.  

7. Distribute Remaining Assets

When you’ve settled debts, taxes, and other obligations, it’s time to estimate the fair market value of the remaining assets. Distribute profits and assets among the business members. The operating agreement should contain the agreed distribution of assets. If it does not, distribute the funds according to each member’s contribution. Keep a record of all payments in case of future disputes. 

How Much Does It Cost to Dissolve an LLC in Indiana?

It costs $30 to file Articles of Dissolution in Indiana. You can also expect other closure costs. Include tax consultancy, legal advice, and an LLC service fee in your budget. 

Should I Dissolve My LLC Myself or Hire an LLC Dissolution Service in Indiana?

It is possible to dissolve your LLC yourself. It may even be worth considering if your business is simple and you understand the process. If there are any complexities relating to your business and the closure process, a filing agent will save you time, effort, and significant risk. 

Filing omissions and administration errors delay the dissolution process. Errors can lead to disputes, leaving you liable for extra, unexpected costs. A professional Indiana LLC service agent, like those working at doola will save you time and money. 

You Can Confidently Close Your Indiana LLC with doola

Don’t leave the future to chance. File the Indiana Articles of Dissolution with confidence when you let a doola agent file on your behalf.  For you, it is a simple three-step process.

  1. You supply doola with the required information.
  2. doola files the Articles of Dissolution on your behalf.
  3. doola will follow up and let you know when the Secretary of State approves the dissolution.

If there are any queries or further information required, your doola LLC service agent will contact you.

Swift business closure removes the risk of further legal or financial obligations. Don’t run the risk of delays. doola will dissolve your Indiana LLC quickly and efficiently.

FAQs

How long does it take to dissolve an LLC in Indiana?

Mailed documents take between three and five days to process. Factor in time for other processes like tax submissions and employment and contractual terminations. 

Can I dissolve my LLC without notifying my members in Indiana?

LLC dissolution requires member consent, as outlined in the operating agreement or under state law. Failing to notify and involve all members could result in disputes.

Can I dissolve my LLC if I have pending lawsuits in Indiana?

Yes, you can dissolve your LLC if you have pending lawsuits in Indiana. Pending lawsuits will, however, complicate matters, so you should seek legal advice. A legal professional can help you explore the financial and legal consequences of the pending lawsuit. 

Can I cancel my EIN once my LLC is dissolved in Indiana?

You can and should cancel your Employee Identification Number (EIN) when you dissolve your LLC. The IRS designates this number to your business as a tax-paying entity. When you settle the LLC taxes, you can cancel the EIN.  

What happens if I don’t properly dissolve my LLC in Indiana?

The members will be liable for legal and financial obligations if you fail to properly dissolve your LLC in Indiana. 

Can I reopen a dissolved LLC in Indiana?

Yes, you can reinstate a dissolved LLC in Indiana. File the appropriate form with the Indiana Secretary of State. Based on the reason for dissolution, the ease of reinstatement may differ. 

Lindsey Rudy
Lindsey Rudy
Content Specialist
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