Can a Minor Own an LLC? (HERE IS WHAT You SHOULD CONSIDER)
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by Sam Mollaei
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You may wonder, “Can a minor own an LLC?”
That is a good question, especially if you are a young person with a great business idea or you are a parent of a teen who wants to start a business.
No matter how great of an idea a teen or minor has, it does not mean that he or she can jump in and form an LLC.
Legally, most states require budding entrepreneurs to be at least 18 years old. If you are a teen or a parent of a teen that thinks an LLC is a good idea, you may have to wait before you begin the business.
Can a Minor Own an LLC by Setting Up a Partnership?
If you still are wondering, “Can a minor own an LLC?” via a partnership, that may be a possibility. In this case, the partner would be an adult and would be responsible for the formation and running of the business.
The minor would assume a passive interest. However, if you live in a state with strict age requirements, you usually can’t do this.
Book a call to speak to us here: https://mollaeilaw.com/start. You should always consult with a lawyer to explore your options.
Can a Minor Own an LLC or Organize the Entity in Popular States Like Delaware or Wyoming?
You might consider the following – “Can a minor own an LLC or organize an LLC business in one of the popular states, such as Delaware or Wyoming?”
To find out if this can be done, again, you need to speak to an attorney – someone who has in-depth experience along these lines. He can explain your options, and tell you about some of the legal ramifications of forming an LLC company.
Again, book a call to speak to us here at https://mollaeilaw.com/start for all the details.
To create an LLC, one or more people, or an entity, such as an LLC or corporation, can serve as owners or members.
An organizer is given the responsibility for setting up the LLC and completing and signing the articles of organization. You can have an attorney act as an organizer if you wish. The organizer also files the articles with the Secretary of State’s office.
When the articles are filed, the LLC becomes official. Usually, a member is an LLC member, but he or she doesn’t have to be.
Can a Minor Own an LLC in a Popular LLC State Like Wyoming or Delaware?
If you want to know, “Can a minor own an LLC in a popular LLC venue, such as Wyoming?” you may be able to do something, provided you obtain the right legal advice.
That is when you want to book a call to speak to us here: https://mollaeilaw.com/start.
Each state has its own laws concerning LLCs. Therefore, some states may be more lenient than others about minors owning LLCs or participating in the activities.
States that Restrict Minors from Owning an LLC
States that are more restrictive in this respect include Colorado, Illinois, Minnesota, Texas, and Oregon. With respect to other US states, LLC laws do not elaborate on the age of the organizer. This is true for some of the more popular states, such as Wyoming, Delaware, California, and Nevada.
From the current legislation, it appears that minors can form an LLC in the aforementioned states. However, you still should contact an attorney concerning the formation.
Again, book a call to speak to us here- https://mollaeilaw.com/start to get the advice and help you need.
If you reside in a state that will not permit the creation of an LLC by a minor, you can always set up an LLC in a state that will permit it. Or, the minor may also have someone, preferably a lawyer or a parent, serve as the LLC organizer.
How Can a Minor Own an LLC with the Least Amount of Hassle?
At this point, you may be wondering, “How can a minor own an LLC without any complications?” That is certainly an understandable concern.
To elaborate on this subject, you have to know a little more about the different ways you can set up the LLC and run it. For example, an LLC’s members may either be business entities or individuals. Plus, this type of business can have one or several thousand members. Therefore, a minor can become a member of an LLC without creating it.
However, with that being said, you can run into some problems when an LLC allows minor members to be a part of the business.
This can be a real issue if the LLC is member-managed. In this set-up, each member shares in the operation of the business.
Contractual Problems
Problems also emerge when it comes to the enforcement of contracts. That is because the law gives a minor the ability to enter into agreements as well as void them. Therefore, most contracts between minors and other parties can be voided by the minor.
If the minor does void a contract, he or she must return anything of value they received from the agreement. This might be property or cash. The only instance a minor cannot break an agreement is for shelter, clothing, or food.
In addition, many US states will not allow a minor to enter into some agreements at all, such as contracts that cover the sales or purchase of real property. Because of these exceptions in the law, some vendors may feel reluctant about doing business with an LLC that is managed by a member under 18 years old. For example, a company may not want to extend credit to an LLC because the agreement could be voided.
With that being said, you can avoid the issue if one or more of the LLC’s members is over the age of 18. They may be represented by the minor’s parents, or an adult brother or sister or a friend. In this case, the adult members could enter into contracts on behalf of the LLC.
A statement of authority can also be filed in the Secretary of State’s office. This document is used to ensure the enforcement of contracts by adult members in the LLC.
Can a Minor Own an LLC as a Passive Member?
If you wonder, “Can a minor own an LLC as a passive member?” that is another alternative you may want to consider. Again, you will need to get the appropriate legal advice. You can do this easily when you book a call to speak to us here: https://mollaeilaw.com/start.
Doing so will give you the confidence you need to form an LLC in compliance with your chosen state’s requirements.
You may be able to form a manager-management structure for your LLC as well. This type of structure is run by one or more named managers. Managers do not have to be LLC members. They can be members or outsiders.
Any minor members can take on a passive role in the company if the LLC is member-managed. In most jurisdictions, a member management LLC is the default.
To ensure your LLC is member-managed, you need to specify this in your company’s operating agreement or articles of organization.
What To Do Next
IF you are still asking the question, “Can a minor own an LLC?” that is understandable. You need to sort out several details before you consider this type of arrangement.
To learn more about how to form an LLC of this type, it is best to book a call to speak to us here: https://mollaeilaw.com/start.
Once you have taken the initiative, you will feel better about proceeding with any plans.
9 Steps to Starting Your Medical Practice (Updated In 2025)
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Starting a medical practice may seem intimidating, but it doesn’t have to be that way.
In this article, I will walk you through the process with 9 proactive steps that will position you well for success for starting your medical practice.
Whether it’s your own medical practice, surgery center, physician group, or other medical facility, the initial formation can be tricky with state and health care law requirements.
As a business lawyer for entrepreneurs, I’m very familiar with the laws that govern medical businesses.
Even the most educated doctors and physicians need some basic legal help in drafting the protocols and agreements that set the pace for the day-to-day operations in their practice.
With the right legal help to guide you along the way, you’ll be able to enjoy the freedom that comes from working for yourself and doing things your way.
If you have questions that are not addressed here, you can book your FREE business call or send me an email at sam@mollaeilaw.com
How to Start Your Medical Practice
Keep in mind that the details on starting a medical practice will most likely vary based upon your specialty and the state where you want to practice.
However, I can help you understand all the requirements in your state and help you adjust your plan.
Let’s get started…
#1 Secure Your Finances
Whether it’s through a small business loan or some other form of outside capital, you’re going to need enough money to cover the initial startup costs.
If medical school debt still has your budget stretched, think about financial plans that can help lighten the load – like refinancing some of your student loans.
Your initial budget is likely to be fluid, but be sure you include estimated costs for the following.
- Real estate for your medical practice
- Medical records software
- Employees you’ll need (practice manager, nurse practitioners, accountant, lawyer)
- Ongoing medical supplies (gauze, sterile gloves, bandages, tongue blades, thermometers, syringes/needles, etc.)
- Computers
- Office furniture
#2 Take Care of Credentialing
To be able to run your medical practice and submit bills to insurers and other agencies, you’re going to need to secure a National Provider Identifier (NPI) number. This 10-digit numeric identification number is issued by the Centers for Medicare and Medicaid Services to healthcare professionals in the U.S.
You’re also going to need to take care of your credentialing with insurance providers of your patients. While this process can take months, it’s a priority.
In most cases, the insurers will want to know about your education and residency. They’ll also want to ensure you are protected by medical malpractice insurance and that you have the correct licensure to practice medicine in your state.
Completing this step is necessary so that you’ll be able to receive payment from government programs like Medicaid and Medicare, as well as private insurance companies like Blue Cross Blue Shield, Cigna Health, Aetna, and Humana.
#3 Get Your Medical License
While there are diverse requirements for specific specialties, starting your medical practice hinges on you being licensed to practice medicine.
Beyond your NPI, here are the three other licensures you’ll most likely need:
- License to practice in your state. Each state has its own medical board. To find and apply to the one that is relevant to you, follow this link to the Federation of State Medical Boards.
- U.S. Drug Enforcement Administration (DEA). If you’re a doctor starting your own medical practice, you’ll likely be writing prescriptions for medications. To do this legally in the U.S., you’re going to have to apply for licensure from the DEA.
- Other regulations related to your practice. Depending on what’s included in your practice, you may have to get other licensures. For example, a certification is required if you have an in-office lab. Likewise, much of your medical equipment used for diagnoses will likely have to be registered with your state.
I know the types of certifications that are needed, but finding the right ones that will work correctly for your medical practice will take some input from you.
To talk more about your specific individual needs, send me a short email at sam@mollaeilaw.com or book a call with me here: https://mollaeilaw.com/start
#4 Set Up Your Professional Corporation
For many professionals, a professional corporation is the only way they can incorporate their services. While professional corporations are similar to larger corporations in many ways, they do have special requirements.
The rules for establishing and maintaining a professional organization vary from state to state, so it’s vital you be clear about what’s required where you live and work.
Because setting up your professional corporation requires following certain legal protocols, we highly recommend for you to have us guide you through the process.
To talk more about setting up your professional corporation, send me a short email at sam@mollaeilaw.com or book a call with me here: https://mollaeilaw.com/start
#5 Make Your Electronic Health Record (EHR) Selection
Being able to digitize your patients’ records is simply the way things are done.
Because your EHR will most likely serve as the one-stop-hub for info on your patients’ diagnosis, medical history, lab results, prescription orders, etc., it’s vital that you make the right choice with your EHR.
With your EHR, you’ll be able to share patient information with other providers and organizations, including labs, medical imaging facilities, school and workplace clinics, etc.
#6 Decide How You Want to Handle Billing
As you continue thinking about starting your medical practice, you need to have a firm idea of how you want to get paid.
While many medical professionals choose to have in-house billing operations, others prefer to outsource theirs. There are pros and cons to both approaches.
For example, with in-house billing, you retain control over all financial operations of your practice. Also, when glitches occur, your team is in the perfect position to monitor the problems and fix them on the fly.
On the other hand, it can be less expensive to outsource your billing.
Plus, your billing vendor should be able to provide you with comprehensive financial performance reports on a regularly scheduled basis or on request.
#7 Set Up Your Human Resources
As you consider the staff you want, make a list of the attributes you’re looking for in the ideal person for that position.
No matter your specialty, a successful medical practice is dependent upon having people who understand the patient-doctor relationship and will do their jobs based on that concept.
Whether you need help with reception, billing personnel, nurse, or practice manager, I can help you with identifying the staffing needs as you continue thinking about starting your medical practice.
#8 Establish Your Professional Corporation Website
In an age where most people do much of their shopping – including for medical services – through a Google search, a substantial web presence is essential.
The key is making sure your medical practice ranks high on a prospective patient’s online search.
Having a slick web design with all the bells and whistles is one thing. What good is it doing you, though, if your practice’s site is on the third or fourth page of a Google search?
Making sure your site is optimized is essential is an area where I excel.
Just send me a short email at sam@mollaeilaw.com and we can brainstorm over how to get your site at the top of the search results.
#9 Market Your Medical Practice
For your practice to thrive, you’re going to need patients.
In addition to thinking about “grand opening events,” it’s key you remember that marketing should be an ongoing effort with your medical practice.
Effective ways of doing this include:
- A solid social media presence
- Hosting open houses
- Advertising
- Starting a patient referral program
- Networking with local hospitals and other medical professionals in your area
- Becoming a “trusted source” for local journalists
- Making sure your website content has good search engine optimization (SEO) techniques so you can be found easier online.
What To Do Next
To get help with starting your medical practice, email me at sam@mollaeilaw.com or book a call to speak to us here: https://mollaeilaw.com/start
Most doctors and physicians wanting to start their own practice are filled with the entrepreneurial spirit; they want to do business and practice medicine on their terms.
As a business lawyer for entrepreneurs, I helped more than 3,000 people launch their own business. More than 1,200 appreciated my help so much that they have given me 5.0 Star Google Reviews.
To discover how I can help you with starting your medical practice, you can book your call here or email me at sam@mollaeilaw.com
How to Prepare Your Small Business for the Unexpected
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Running a small business is never easy, but keeping one running while dealing with unforeseen emergencies can seem impossible.
To see your small business through the unforeseen, you need to lay the right groundwork. Read on to learn how to prepare your company for the unexpected.
Employee Relations
A small business does not have the benefit of large scale operations, or a lot of savings, or name recognition, which is of course why small businesses are so much more vulnerable to disasters than big businesses are.
The best thing you can do to prepare your small business for the unexpected is to forge and maintain strong employee relations. Your employees form the public face of your business, and it is they who do the most to determine what your customers’ experiences are like. When times get tough, it is your employees who will either go the extra mile for you or just phone it in until they can find a better job somewhere else.
During hard economic times, you need your employees to give superb customer service. You might need them to work with reduced hours, pay, or benefits. The only way they will do any of these things is if you have a good relationship with them. If you want them to be there for you during the bad times, you need to earn their trust.
Always take the time to update them on how the business is going and what they can expect in the future. Doing so will help them develop a sense of security at your company. Also, you should help your employees whenever you can by giving them time off for emergencies or switching a shift at need. This demonstrates that you will look out for your employees, and it will make them feel like they want to look after you too.
When times get tough, your employees will want to stay with your company because know they can trust you. Because they want your company to succeed, they will work harder to make it succeed. Their efforts could easily make the difference between success and failure.
Make a Rainy Day Fund
No matter how small your business is, you need to make a rainy day fund for it and regularly add to that fund. Ideally, you should set up a savings account and deposit a little money into it every month, no matter how tight your budget gets.
At the very least you should have a jar that you put all your change into. When your business has a rainy day fund, you will have the resources ready to deal with the unexpected when it happens.
Hold Foresight Meetings
No matter how clever and experienced you are, you can’t foresee everything that could happen. By holding quarterly foresight meetings, though, you can come as close as humanly possible. These meetings are opportunities for you to try to figure out what is probably going to happen to your business in the near future. They let you make contingency plans for likely events, and even some of the unlikely events. They make your company able to more quickly and effectively respond to the unforeseen.
You need employee representatives at these meetings, as well as advisers you can trust and some professionals who work in your industry but who are not part of your business. It might not be a bad idea to have your lawyer and accountant present as well. This mix of people makes sure that you have a good range of opinions and skill sets that should help you develop a good picture of what is happening in your business and in your industry.
These meetings should be times for speculation. Try to identify likely near term trends in your industry as a whole, and even across the country. Try to figure out how these trends could affect your business and whether or not your business is positioned to cope with them. Make whatever plans you can for dealing with each of the contingencies you identify.
Remember that the demand cycle always lags behind supply disruptions. When you are aware of the trends that can affect your industry, you can spot how trouble elsewhere in your industry will come to affect consumer demand for your products or services before anything happens. This advance knowledge will let you shift resources and marketing efforts to be ready for the change in demand when it happens.
The Takeaway
To prepare your small business for the unforeseen, you need to have dedicated resources standing ready to cope with it. Developing good employee relations and setting up a rainy day fund will make sure you have these resources.
Keep in contact with your business law attorney and make sure he or she is aware of any legal situations your business may be facing. Contingency planning will make sure that you and your company know how to use these resources when and if the time comes. Take these three steps and your small business will be well protected against unexpected problems.
What Should Your Business Plan Include? (3 Essential Elements)
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Few things in life are as equally daunting and exciting as writing your business plan. For someone who has never done one before, it can be difficult to know what exactly to include.
The document is supposed to be a plan of what you’re going to do and how you’re going to go about it, but knowing how much or how little detail to go into can be confusing.
We can’t write your business plan for you, but we can tell you what it absolutely needs to include. Here are some important matters it’s vital your business plan accounts for.
If you’d like to get help with drafting or reviewing your business plan, email us at info@mollaeilaw.com or book a call with us here.
Basic Concept of Business Plan
What is your business? What are you doing differently? How are you going to achieve your aims?
These are the questions your basic concept needs to cover before you start. This section needs to discuss the industry you will be entering and the space you hope to occupy within it.
How will your particular product or service affect people and entice their interest? In short, how do you hope to make sure this business you’re proposing is a success.
Think of this as a pitch of your business as a whole. If you’re looking to sell a product, outline what the product is and how you are proposing to sell and promote that product in a unique way. Somebody should be able to understand the rough outline of your business from this section, so make sure it’s succinct and specific.
Financial Plans and Requirements
Having your finances in order is the most essential step to securing the future of your business within your business plan.
In this section, you will lay out what financial investment you need based on your projected financial statements. This will help provide a model to explain how your plans for the company and its strategies will play out.
This section should be entirely based on factual projections, rather than a personal feeling about how you hope the business will grow. Don’t downplay your ambition, but make realistic predictions influenced by the state of the market at the time and your expected place within it.
These facts need to be checkable and demonstrable, no one will invest in a business plan that has no credibility or projected potential based in reality. It will simply be too big a risk.
Within this plan, it helps to include methods you attempt to implement to make sure your business doesn’t go the way of so many others before you. Think about methods unique to your business or industry that could help you implement more profitable systems.
For example, if you run a fleet of vehicles, it would benefit you to introduce fuel cards for all of your drivers. A UK Fuels card can help you save your business money every time someone buys fuel and cuts out complications in the expenses claiming process. Little changes like this make a huge financial difference in the long run.
A Market and Audience to Pursue
Now you have a basic concept, you need to explain who you’re going to target with your new business.
Target demographics and audiences are a vital part of making a business successful and not spending months feeling around in the dark for the perfect person to try and sell to.
What does this customer look like and why would they be interested in you? Are you targeting customers or looking to sell B2B? The second audience requires a very different approach. Once you’ve decided what kind of audience you want to reach, you need to determine how you’re going to reach them.
You don’t need to go in-depth into your marketing strategy, but give an idea of what will set your business apart from others in your market.
Background On Your Team
Businesses are rarely started by just one person anymore, a solid team of experienced professionals will be needed to get the business off to a good start and establish credibility to potential investors.
Information about key members of staff and their positions within the business is an often misunderstood part of a good business plan. This isn’t a space to go into a long, detailed biography of their personal skills and traits, but explain their employment history and the opportunities that afford your business to grow.
If an investor can see someone from a well-established company will be coming in to head up an operation in your business, they will have more faith in its potential.
WHAT DO DO NEXT
Use this section to show why you have faith in this person in the same way you have faith in the ideas and target markets of the plan.
Business plans don’t need to be the impossible task it almost feels like they are. There are a lot more elements you should factor into yours. This will obviously change from industry to industry, but these are four key sections it’s vital to include.
If you’d like to get help with drafting or reviewing your business plan, email us at info@mollaeilaw.com or book a call with us here.
What Qualities to Look for When Selecting a Lawyer for Your Case
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Finding the right business lawyer isn’t nearly as straightforward as it may initially seem.
Generally speaking, most people will only need to consult a lawyer a few times in their lives, so the search process is justified unchartered territory for many.
At the end of the day, a lawyer is an advocate—someone who fights on your behalf using reasonable, ethical, and cost-effective means to ensure you see the case through in good financial and legal standing.
Because your lawyer serves as a kind of counselor, it’s important to be choosy when selecting a lawyer for your case.
With such a huge pool to choose from, it’s up to you to decide which attorney is most compatible for you and your case.
Using this guide, I’ll walk you through which qualities to look for when narrowing down your search.
Comfortability
There are few things more distressing than trying to work with someone who you’re uncomfortable with.
Not only should you feel comfortable in your lawyer’s presence, but you should also feel totally free to open up to them and ask questions.
An open relationship will provide a comfortable venue for you to share information pertinent to your case confidently and honestly. After all, a lawyer can’t be a true asset to you unless they know all of the information related to your case.
Expert communication skills
Communication is key, and a lawyer without good oral and written skills is a total red flag. Fortunately, due to the rigor of law school, odds are pretty unlikely any lawyer in your pool of potentials won’t meet your basic communication levels.
Ultimately, in order to successfully argue in the courtroom before juries and judges, a lawyer must have impeccable public speaking skills and people-person qualities.
Lawyers must also harness the ability to write persuasively and concisely to make the best case possible to defend you and procure the results you want.
Detailed project management
Lawyers handle a great deal of paperwork, and it’s up to them to maintain a sense of order and organization throughout the duration of your case.
Whether you’re working with a criminal defense attorney or a business lawyer, your case has a number of loose ends that need to be precisely tied to ensure you see the case through favorably.
As lawsuits and cases evolve, they typically become more complex, and with that increased complexity comes a call for increased attention to detail, and flawless project management. This encompasses everything from streamlining projects to multitasking effectively.
Compassion
Some attorneys see law as a job whereas others view law as a method to find justice where justice is deserved. Compassion is an essential characteristic to look for in an attorney as it truly defines how they handle their cases and how they interact with their clients.
Compassionate lawyers feel a client’s pain but maintain enough professional judgment to stay emotionally detached from your individual case. At the end of the day, you want to feel like your attorney is in your court and truly fighting for you.
How to Dissolve Your LLC (7 Practical Steps to Close Your LLC)
A Limited Liability Company is an amazing tool by which to conduct business especially from a tax and liability perspective. Unfortunately (or fortunately), some situations arise which may cause the need to dissolve a LLC.
Some scenarios include:
- Planned expiration in which the LLC was only going to be valid for a set period of time;
- The business purpose has been completed and thus is does not make financial or legal sense to continue to pay taxes and fees associated with continuing the limited liability company; or
- Member disagreement (yes those occur frequently), among other valid and considerable reasons.
No matter what type of LLC, and there are advantages to different types, or why you are choosing to dissolve a limited liability company, there are steps that must be taken to avoid fines, taxes, and a ultimate loss of goodwill in the industry which could obviously prove to be detrimental to your bottom line in the long run.
Shameless plug… Whether you are winding up and dissolving a LLC in any state (we have guides for Texas, Delaware, New York, Wyoming, Florida, California), it will seem like a daunting task, but it is simple with a basic knowledge of the law and common sense.
That being said, it is always best to utilize the knowledge and expertise of an experienced business lawyer when deciding the appropriate steps to take in dissolving a LLC in your state. Take the first step here: https://mollaeilaw.com/start
Though some states have their own methods, the totality of the process is generally the same absent a few words and linguistic hurdles.
As with any major business decision, your biggest concern with dissolving a LLC should be:
- How can I do this efficiently without undue burden or delay;
- How can I avoid getting in trouble with the IRS; and
- How can I avoid getting sued? Below are steps that will assist you with all of the above in hopes that you are able to wind up your business effective.
So…how do you dissolve a LLC? While the actual black-letter steps are small, the processes and things to consider are great and varied.
Check The Article Of Organization For The Limited Liability Company To Provide You With An Outline And Any Steps As To Dissolution.
Your articles of organization are the first place you need to look when determining how to dissolve your limited liability company.
In the beginning, if you worked with a legal professional in determining how your business was to be set up, there should be a clause as regarding the dissolution of the company.
Each set of Articles are different; however, reviewing the process you initially put in place will be beneficial. This document will be accessible through the Secretary of State in your particular state if you don’t have a copy on hand.
Inform Necessary Parties Of The Dissolution
Though anyone familiar with the dissolution of a LLC will likely already be on notice that the limited liability company is dissolving, it is important to think about whether there are any other parties that need to be involved in the dissolution process -whether through proxy voting or simple notice.
An individual finding out that their share of a company has been deemed insignificant enough to either be an oversight or outright disregarded is a surefire way to a lawsuit.
Pay People!
At the end of the day – you have to pay your debts. Disregarding the possibility or threat of bankruptcy, you must pay your creditors, vendors, employees, etc., prior to formally dissolving your LLC in order to avoid undue delay and/or the threat of litigation.
Remember, others get paid prior to your LLC members and you receiving any assets, so it is important to handle any outstanding costs prior to dissolution.
Pay Any Outstanding Taxes and Inform Uncle Sam
Dissolving a LLC is a business decision and the worst part of a business is generally paying taxes.
Ensure that you have ceased operation prior to the end of the fiscal year to avoid paying next years taxes for a LLC that you will not be operating; however, understand that you will still need to file one additional tax return for the business you conducted in the previous fiscal year.
There are tax implications with the creation and dissolution of a business.
Our firm does not portray itself as a certified tax law firm; though we will do our best to advise you as to how your dissolution will affect your business in the eyes of the IRS as well as potentially you personally.
If you have any tax concerns regarding the dissolution of your business, please give us a call or we would be happy to refer you to another professional. Lastly, ensure that you are up to date on your tax payments to avoid any tax penalties that you will not be expecting at a later date.
Pay Assets To Members If You Have The Funds – Technically You’re A Creditor
If after it is all said and done, the LLC still has remaining asset and funds, ensure that those assets are distributed to the members as they have a legal right to them.
Technically, members are creditors to the LLC depending on how the LLC was created and the capital provided by the members.
Again, one of the top concerns should be not being sued and the dissolution stage is not the time to be selfish or sneaky.
File The Articles Of Dissolution
Dissolution is always going to be conducted on a state level. First and foremost, you are required to file Articles of Dissolution with the Secretary of State.
This should be the only form that must be filed assuming that the dissolution is voluntary.
If the dissolution is not voluntary, please contact our office for a consultation as to the appropriate steps to take to ensure the business is dissolved appropriately.
Upon the Secretary of State approving your Articles of Dissolution, your LLC is technically dissolved; however, you need to ensure that you have engaged in the above actions to avoid fines, penalties, and possibly the threat of business litigation.
You are “technically” supposed to pay off all of your debts prior to filing the Articles. We use the word technically because while you may not get knicked for waiting a few weeks to pay off your debts, if the creditors come calling you could have potential problems.
Dissolve Your LLC In All States Where It Had A Place Of Business.
Last but not least, make sure that you dissolve your LLC in all of the states where you housed a place of business.
This is predominantly only a concern for larger business who has “headquarters” or “corporate offices” in many different states.
Many business owners make the mistake of foregoing this step and it cost them more than money, though money is the major aspect of the penalty.
Forgetting to dissolve your business in each state in which you have a place of business not only shows a lack of business savvy – it also may hinder your prospects of conducting business in that state in the future.
What To Do Next
Our law firm has had the opportunity to assist hundreds of companies dissolve their LLCs in California.
While the process may seem simple, there are various steps that must be taken to dissolve your company efficiently, avoid issues with the IRS, and avoid the threat of litigation.
Take the next step and book a call with us here or call us today at 818-925-0002 for a consultation as to the business implications of your dissolution and any other business concern you may have in the future.
