If your Oklahoma business has run its course and it’s time to wind up the business, taking the steps to dissolve an LLC is essential to protect yourself and the business. This will prevent possible fees or penalties. Include steps to inform the state government, IRS, and all other key stakeholders once you decide to dissolve your Oklahoma LLC. Read on to understand how to dissolve an LLC in Oklahoma.
Understanding LLC Dissolution in Oklahoma
Dissolving an Oklahoma LLC involves closing business operations or terminating business activity. There are many reasons to dissolve an LLC, from closing an inactive entity to shifting to a different legal entity. If you created an LLC and don’t need it anymore, dissolving it is the best course of action to avoid fees or penalties.
Other examples: you may want to dissolve an Oklahoma LLC when the company is no longer economically viable, if you’re moving on to other business ventures, or if the business purpose is completed.
To dissolve an Oklahoma LLC, you will need to file the Articles of Dissolution with the Oklahoma Secretary of State and pay a $50 filing fee.
Why Dissolve an LLC in Oklahoma?
Business owners choose to dissolve LLCs for a variety of reasons. However, the underlying reason is usually 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 unused LLC. If you’re a visa holder who created an LLC, you don’t need to dissolve an LLC that is still in use or has a business purpose, even if you’re no longer in the US.
On the other hand, if you have multiple LLCs, dissolving LLCs you don’t use can simplify filing and reduce costs. Reasons to dissolve an LLC include:
- Loss of business viability
- The LLC is no longer needed
- The business is closed
- The business is no longer allowed to operate in the US
How to Dissolve an LLC in Oklahoma in 7 Steps
There are seven simple steps to dissolve an Oklahoma LLC, wind up business affairs, and officially close up shop. Here’s a checklist of the steps to take.
1. Review Your LLC’s Operating Agreement
Understanding the specific dissolution procedures outlined in your LLC’s operating agreement is essential. This will usually include information on members’ ownership percentage of the LLC, their voting rights, and dissolution procedures. Be sure to double-check the requirements for signatures, voting, or other procedures to dissolve the LLC.
2. Vote to Dissolve an LLC
Next, meet with all LLC members to discuss and approve the dissolution. This can be done online or in person and may require unanimous agreement, depending on procedures and requirements stated in the operating agreement.
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. Oklahoma’s filing requirements mean you must file the Articles of Dissolution of an Oklahoma Limited Liability Company with a $50 filing fee. You can mail the Articles of Dissolution to:
OKLAHOMA SECRETARY OF STATE
2300 N Lincoln Blvd., Room 101, State Capitol Building
Oklahoma City, Oklahoma 73105-4897
Phone: (405) 521-3912
4. Notify Tax Agencies and Pay Remaining Taxes
You must file all necessary state and federal tax returns, including income tax and employment tax returns, with the appropriate tax authorities. Consult with a tax professional or CPA to accurately complete these filings and ensure you meet all filing deadlines.
5. Inform Creditors and Settle Existing Debt
As part of the winding-up process, you must notify creditors and settle the existing debt when dissolving an LLC. Make a plan to pay off all credit card debt or loans. Be sure to notify creditors and close any lines of credit as part of dissolving an LLC.
6. Wind Up Other Business Affairs
Next, it’s time to complete the winding-up process, which will involve informing employees, customers, and other key stakeholders. Depending on the business, you may need to sell machinery or inventory and distribute assets. You will need to close business bank accounts, cancel business licenses, and close all lines of credit. If you use an Oklahoma registered agent service, you must inform it and cancel the services.
Steps to wind up an Oklahoma LLC can include:
- Cancel business licenses and permits
- Notify suppliers and customers
- Handle employee matters
- Close company bank accounts
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 include equal membership percentages or any other distribution. Once filings are complete, taxes are paid, liabilities are settled, and assets are distributed, the LLC is officially closed.
How Much Does It Cost to Dissolve an LLC in Oklahoma?
It costs $50 to dissolve an LLC in Oklahoma. You can pay by credit card or check. Contact the Oklahoma Secretary of State at (405) 521-3912 for more payment options.
Should I Dissolve My LLC Myself or Hire an LLC Dissolution Service in Oklahoma?
It’s possible to dissolve an LLC yourself. But it can be advantageous to tap professional assistance for this matter. With so many aspects of dissolution to take care of, from paying debts to employee severance and asset distribution, hiring someone to handle dissolution filings can ensure they’re done correctly. You can save time and money by using a professional dissolution service.
doola Dissolution Service For Oklahoma LLCs
Closing an Oklahoma business is a big task that requires meeting with key stakeholders and ensuring all business finances are settled. Filing the dissolution paperwork takes time and attention to detail. If you need support, consider contacting doola for customized LLC dissolution services.
With doola dissolution service, you 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 Oklahoma confirms LLC dissolution, you’ll get a message immediately. Get doola LLC dissolution to save time!
How long does it take to dissolve an LLC in Oklahoma?
The Oklahoma Secretary of State takes about one week to process your LLC dissolution filing. You can pay $25 for expedited filing, guaranteeing same-day filing for documents received up to 4:30 p.m.
Can I dissolve my LLC without notifying my members in Oklahoma?
You generally cannot dissolve an Oklahoma LLC without informing the members. You’ll need to follow the procedure of dissolution outlined in the LLC operating agreement.
Can I dissolve my LLC if I have pending lawsuits in Oklahoma?
If the LLC has pending lawsuits, you will need to wait to resolve them before dissolving the LLC. Plan to pay all debts and liabilities and settle pending lawsuits before dissolving an Oklahoma LLC.
Can I cancel my EIN once my LLC is dissolved in Oklahoma?
You can’t cancel an EIN even if you close the business. However, you need to inform the IRS by sending 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 your business account. Learn about canceling your EIN here.
What happens if I don’t properly dissolve my LLC in Oklahoma?
You can face fines, penalties, or additional fees if you don’t properly dissolve an Oklahoma LLC. After the annual report is 60 days late, an Oklahoma LLC will have its status changed to “Not in Good Standing.” It’s worth the minimal time and costs to close the LLC correctly.
Can I reopen a dissolved LLC in Oklahoma?
You can reopen a dissolved LLC in Oklahoma by filing the Application for Reinstatement with the Oklahoma Secretary of State. You must file missing annual certificates to bring the LLC back into good standing.