While Louisiana can be a favorable place to start a business, when it’s time to move on from an old business, legally winding up the business and dissolving the LLC will protect you and the company. The winding up process and filing for dissolution helps you avoid fees, penalties, and liability. Fortunately, dissolving an LLC in Louisiana is simple and only requires a few simple steps. Read on to understand how to dissolve an LLC in Louisiana.

Understanding LLC Dissolution in Louisiana

Dissolving a Louisiana LLC involves closing business operations or terminating LLC activities and making an official filing with the Secretary of State. There are many reasons to dissolve an LLC. If you created an LLC and don’t need it anymore, dissolving it is the best course of action to avoid fees or penalties. 

Reasons you might dissolve a Louisiana LLC include:

  • The business purpose is completed
  • You’re moving on to other business ventures
  • The company is no longer economically viable

In Louisiana, to dissolve an LLC, you will need to file an affidavit to dissolve a limited liability company with the Louisiana Secretary of State and pay a $100 filing fee. 

Why Dissolve an LLC in Louisiana?

Business owners choose to dissolve an LLC for many reasons, but the underlying reason is that the LLC is no longer needed. For example, if you want to pursue another business venture through a different business entity, you could dissolve an LLC no longer needed.

Likewise, if you have multiple LLCs for multiple purposes, dissolving LLCs you don’t use can simplify filing and reduce costs. Reasons to dissolve an LLC include:

  • The LLC is no longer needed
  • Loss of business viability 
  • The business is closed 
  • Bankruptcy
  • The business is no longer allowed to operate in the US 

If you’re a visa holder who created an LLC, you don’t need to dissolve a Louisiana LLC, even if you’re no longer in the US. 

How to Dissolve an LLC in Louisiana in 7 Steps

Follow the steps below to dissolve an LLC in Louisiana and move on with other business ventures. 

1. Review Your LLC’s Operating Agreement

Start by understanding the specific dissolution procedures outlined in your LLC’s operating agreement. This can include information on member’s ownership of the LLC and their voting rights. It will also include the signatures, voting, or other procedures required to dissolve the LLC legally. 

2. Vote to Dissolve an LLC

Next, convene a meeting with all LLC members to discuss and approve the dissolution decision. This can be done online or in person and may require unanimous agreement. Double-check that the operating agreement doesn’t have any additional stipulations. 

3. File Articles of Dissolution

Prepare and file the necessary legal paperwork, known as Articles of Dissolution, with the appropriate state agency responsible for LLC registration. In Louisiana, you’ll need to file the  Affidavit to Dissolve with the Louisiana Secretary of State. After the filing is complete, you’ll receive a Certificate of Dissolution. 

You can make the filing through mail, online, or in person. To file online, visit the GeauxBiz website and pay by credit card or money order.

Or, mail a printed and signed copy of the affidavit to:

Commercial Division 

P. O. Box 94125 

Baton Rouge, LA 

70804-9125 

You’ll need to include a check made out to the Secretary of State for $100. You can opt for expedited filing. It an additional costs $30 for processing within 24 hours and $50 for processing within two to four hours. You can also file in person and pay by credit card, money order, cash, or check.

You can contact the Commercial Division by phone with any questions: (225) 925-4704. 

4. Notify Tax Agencies and Pay Remaining Taxes

It can be helpful to consult with a tax professional or CPA to complete all filings correctly and file on time. Ensure you file all necessary tax returns, including income and employment tax returns, with the appropriate tax authorities. On federal filings, you must check the final return box on your company’s federal tax forms. 

5. Inform Creditors and Settle Existing Debt

Plan to pay off all credit card debt or loans and notify creditors as a key part of closing a Louisiana LLC is settling all debts and distributing assets. You must also close any lines of credit to dissolve an LLC.  

6. Wind Up Other Business Affairs

Finally, it’s time to finish winding up the business. This may include selling machinery or inventory. You will also need to inform suppliers, customers, employees, and other key stakeholders and make relevant plans for each. 

Finally, plan to close business bank accounts, cancel business licenses, and close any other lines of credit. If you used a Louisiana registered agent service, inform the registered agent and cancel the service. 

Winding up a Louisiana LLC can include:

  • Notifying suppliers and customers
  • Canceling business licenses and permits
  • Settling employee termination packages
  • Closing company bank accounts
  • Closing business lines of credit

7. Distribute Remaining Assets

Once all debts, obligations, and tax liabilities have been settled, distribute the remaining assets and profits among the LLC members according to the agreed-upon terms outlined in the operating agreement. This may be in equal proportions for each member or any other specified percentage. Asset distribution is the final step of company dissolution.

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

It costs $100 to dissolve an LLC in Louisiana. You can pay by check, money order, cash, or credit card. You can only pay by cash with walk-in customer service. You can opt to pay a $30 to $50 expedited filing fee if you need the processing to be completed within four to 24 hours. 

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

You could opt to dissolve the LLC yourself or hire a professional service to dissolve the LLC. If you choose to do it yourself, you’ll need to follow the steps above. The actual filing process is simple that you could do online, through the mail, or in person. You’ll also need to take additional steps for wrapping up the business, such as settling all debts, closing bank accounts, and distributing assets. 

However, tapping professional assistance for this matter can help save both time and money. You could hire professionals to handle the dissolution for you, freeing up time so you can focus on new opportunities. 

How doola Can Help You Dissolve a Louisiana LLC

Closing a Louisiana business is a big job. From informing key stakeholders and dealing with employees to paying off debt, taxes, and filing the dissolution paperwork, it takes time and attention to detail. If you need support, consider contacting doola for customized LLC dissolution services. 

With doola’s dissolution service, you can create an account and upload basic company information. Then, doola will prepare the Articles of Dissolution and get back to you if any additional information is needed. When Louisiana confirms the dissolution, doola will inform you immediately. Get doola LLC dissolution to save time!

FAQs

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

It takes about one week to dissolve an LLC in Louisiana, but you could pay for expedited filings. In that case, the processing will take between four and 24 hours, depending on the service you select.

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

You cannot dissolve a Louisiana LLC without informing the members. LLC dissolution procedures may vary and are outlined in the operating agreement, so double-check your operating agreement for any expectations. 

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

Pending lawsuits for the LLC will generally prevent you from dissolving the LLC in Louisiana. Plan to pay all debts and liabilities and settle pending lawsuits before dissolving a Louisiana LLC. 

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

You must inform the IRS to close the business account, but you can’t cancel an EIN even if you close the business. To inform the IRS, send a letter with the complete legal name of the entity, the EIN, the business address, a copy of the EIN Assignment Notice issued with your EIN, and the reason for closing the account. Learn about canceling your EIN here

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

You could face additional fees, fines, or penalties if you don’t properly dissolve a Louisiana LLC. It’s worth the minimal time and costs to close the LLC correctly to avoid possible future complications. 

Can I reopen a dissolved LLC in Louisiana?

You can apply for the reinstatement of a dissolved LLC in Louisiana. You must pay $75 for an administratively dissolved LLC plus the annual report filing fee of $25. There is no late fee for past-due reports.

Alison K Plaut
Alison K Plaut
Content Specialist
Doola's website is for general information purposes only and doesn't provide official law or tax advice. For tax or legal advice we are happy to connect you to a professional in our network! Please see our terms and privacy policy. Thank you and please don't hesitate to reach out with any questions.
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