Has your Nevada business served its purpose? Has the time come to shut the doors? Perhaps you’re ready to pursue a new venture as you turn the page on your business career. If this is the case, you are likely looking for information on how to dissolve an LLC in Nevada. You’ve come to the right place. This article offers guidelines and detailed information on closing your Nevada business.  

Understanding LLC Dissolution in Nevada

As the owner of a Limited Liability Company (LLC), you probably remember the excitement and trepidation of launching a new business. Still, most businesses run their course, leading members to the dissolution process. Dissolution is the process whereby members terminate a business entity.

Dissolution is an important process. It ensures the LLC won’t incur any new financial or legal obligations. It also eliminates the need to complete annual LLC reports and tax returns.  

Why Dissolve an LLC in Nevada?

Businesses come and go, so there are many reasons why members choose to dissolve a Nevada business entity. Here are some of them:

  • The LLC has ceased to do business: If the business operations no longer bring in profits, the members may choose to close shop. Dissolving the LLC ends the members’ financial or legal liabilities.
  • The members cannot agree on business decisions: Irreconcilable differences between members may result in the closure of the business.
  •  The objective for which the business was created is met: Members sometimes launch a business to serve a particular objective. When the goal is met, there is no reason to continue the business.
  •  The LLC is overwhelmed by debts: If the company isn’t paying its way, it may be time to call it a day.
  • The company is acquired by another company: Companies are often dissolved when they merge or change hands.

How to Dissolve an LLC in Nevada in 7 Steps

The process of dissolving a Nevada LLC is not difficult, but there are several steps you must follow. Ensure that you omit none of the steps, or you could create problems in the future.

Here’s how to dissolve an LLC in Nevada.

1. Review Your LLC’s Operating Agreement

The LLC members will have signed an operating agreement when you first launched the business. The operating agreement should contain all the rules of engagement from start-up to continuation and dissolution of the LLC.

It is, therefore, essential that you understand the contents of the operating agreement before you start the process. The operating agreement should inform you of the closure process.   

2. Vote to Dissolve an LLC

Call an LLC member meeting to discuss and approve the dissolution. The members must also agree on a date for dissolution. Record all votes in the minutes or as separate voter documents in the file. If there are any disputes or queries, you must have access to the proof of the vote.

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. Each state has different filing requirements. In Nevada, you can file in person, online, or by mail. Include the filing fee payment with the dissolution forms.

4. Notify Tax Agencies and Pay Remaining Taxes

Businesses typically have tax obligations with various state and federal departments.  Ensure you file all necessary tax returns, including income tax, employment tax returns, and sales and usage tax with the appropriate tax authorities. Consult with a tax professional to accurately complete these filings.

5. Inform Creditors and Settle Existing Debt

Inform your creditors, reconcile statements, and settle your debts or agree on future settlement of outstanding invoices. Make sure that the finance department at the creditor companies has a contact number in case of queries or claims. Set a deadline for creditor claims.

6. Wind Up Other Business Affairs

The amount of work involved in the closure will depend on the business’s complexity. Make sure you cover all stakeholders and wind up all business affairs. Consider the following areas:

  • Notify suppliers: Inform your suppliers of your imminent closure, cover all financial obligations, and supply them with a contact number in case of future claims.
  • Inform customers: Honor your customer orders. Supply customers with a reconciliation of accounts, including claims.
  • Cancel business licenses and permits: Unless you cancel licenses and contracts, you may incur unexpected costs. Items like software licenses often have automatic renewals.
  • Terminate employee contracts: The labor laws and employment contracts determine the notice period and employee closure packages. Understand your obligations and plan accordingly. Seek legal advice if you are unsure of the process.
  • Terminate leases and contracts: If you lease items like printers or vehicles, you must meet the contractual obligations. Contracts usually contain the conditions for early closure. Settle your obligations and terminate the contracts.   
  • Close business bank accounts: Close all business bank accounts and insurance agreements held by financial institutions. Transfer any funds to another account.
  • Sort documentation and arrange for document storage: You have a legal and financial obligation to retain some of your business documents. Find out what documents you must retain. Then, sort and file the document and find safe storage. Discard what you don’t need.

7. Distribute Remaining Assets

When you have settled all your debts and contractual liabilities and filed and paid your tax returns, it’s time to evaluate the company’s final worth. You must distribute the value of the assets and profits to LLC members in the proportions laid down in the operating agreement. If the operating agreement does not cover the distribution of assets, divide the funds according to the members’ contribution.

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

It will cost you $100 to file Articles of Dissolution in Nevada. The state offers an expedited service, but it is expensive. A 2-hour expedite will cost you an additional $500, and a 1-hour expedite $1,000. A credit card payment is allowed at an additional 2.5% of the cost. You can also pay by check for no additional cost.

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

If you know how to do it, you can dissolve your LLC on your own. The process isn’t difficult if the LLC is a simple organization with few assets, liabilities, and stakeholders. However, complex LLCs are difficult to wind up, and you risk making a mistake or forgetting to complete all the steps.

Errors and omissions will result in delays. If the process isn’t adequately completed, you could leave yourself and the other members open to disputes and litigation, which could cost you more than you had bargained for in the closure budget.

Many people prefer to hire an LLC service to reduce the risk and ensure efficient and effective closure. The LLC dissolution agents at doola have years of experience in closing LLCs. They will ensure the timely Articles of Dissolution completion. You’ll have peace of mind when you hand the work to a doola agent.  

Dissolve your Nevada LLC with Confidence Using doola 

Take the risk out of dissolving your Nevada LLC. Let the experts at doola deal with the red tape. We have the knowledge and experience to submit your dissolution forms quickly and efficiently. Here’s how the process works:

  1. You supply doola with the required information.
  2. Your doola LLC service agent completes and submits the Articles of Dissolution to the Secretary of State.
  3. Your doola agent informs you when the Articles of Dissolution are signed.

doola specializes in business processes. We can help you close your business quickly and formally. Let doola handle your dissolution, leaving you to concentrate on your next big venture.

FAQs

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

It takes three to five days to get the Articles of Dissolution processed. Add several weeks for the other processes, depending on your business complexity.

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

It is not legal or ethical to dissolve your LLC without informing the members. Call a member meeting and vote on dissolution.

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

Dissolving an LLC with pending legal suits is complex. The facts surrounding your legal issues will play a role in determining the best course of action. Consult a lawyer for advice.

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

The LLC Employment Insurance Number or EIN belongs solely to the business entity. Therefore, you can cancel it when you dissolve the LLC.

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

If you don’t dissolve your LLC properly, the members remain responsible for the legal and financial liabilities. You will have to file annual reports and tax returns. You also run the risk of penalties for non-compliance.

Can I reopen a dissolved LLC in Nevada?

You can reinstate a dissolved LLC in Nevada. The process and requirements may vary depending on the circumstances of the dissolution and the elapsed time since the dissolution.

Lindsey Rudy
Lindsey Rudy
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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