The decision to dissolve a limited liability company (LLC) in Texas is never easy, which is why working with our credible LLC dissolution lawyer in Houston is essential. Just like setting up a new company, dissolving an LLC takes time and attention to detail.
At GK Law PLLC, we have the extensive knowledge and experience necessary to help you dissolve your business. Contact our law office now and schedule an initial consultation with our trusted Texas business attorneys to learn more about the process.
Sometimes our business ventures do not go smoothly as planned, and it comes time to terminate or dissolve the business. You might want to end things to pursue new opportunities or avoid legal and financial woes. Unfortunately, you cannot simply stop the operations of your limited liability company (LLC) and walk away.
If you are facing this difficult situation and your current business structure is a limited liability company (LLC), it is crucial to seek legal advice from our skilled Houston LLC dissolution attorneys to learn more about how we can assist you as you go through the process of dissolving your LLC. At GK Law PLLC, we are dedicated to the following:
Our law firm will protect your rights and guide you throughout the legal process in Houston, Texas. Learn more about how our team can help you navigate the process of dissolution and other available alternatives tailored to your situation by scheduling an initial consultation with our law office today.
There are many reasons why you might want to dissolve an LLC. While some businesses seem to succeed and operate for a long time, many others have shorter life spans. In Texas, the dissolution of an LLC may occur when the purpose of the LLC has been completed or the business entity is no longer economically viable. Regardless of the reason, dissolution can be complicated, and the assistance of a qualified Houston LLC termination lawyer is valuable.
The business environment can be volatile, and the circumstances surrounding each company or organization are unique. For businesses organized as limited liability corporations (LLCs), the reasons for dissolution and termination can be broad. They may include:
One of the issues that may result in the need to dissolve an LLC includes expiration dates that were decided upon when the business was formed. The expiration can be stated as a specific date or the occurrence of an event such as bankruptcy or the death of a member.
An LLC can generally be formed to fulfill a specific purpose (creating projects, selling properties, etc.), which in some situations is of limited duration. Once the goals are reached, there may be no reason to remain in business.
The bankruptcy or death of the business owner or member may lead to dissolution and signal the end of the business.
Despite the LLC members' best intentions, arguments and disputes may arise regarding the continued operation of the business. If the members of an LLC are no longer in agreement over the direction of the business, it may be time to shut down.
If an LLC is a distributor or manufacturer of a certain product that has liability issues or that is no longer in demand, it may be time to end the business.
Steps were taken to create the structure surrounding your business. Similarly, there are considerable requirements and procedures for dissolving an LLC under Texas Business Organizations Code (BOC). It may seem frustrating, but in the long run, paying attention to every detail may protect you from unwanted penalties or debts.
Following the proper procedures can shield you from any potential liabilities and help you move forward in your new endeavors as quickly as possible. Owners of limited liability companies (LLCs) need to follow certain protocols before they can officially and properly dissolve their LLCs. Our knowledgeable Houston LLC dissolution lawyer can walk you through the steps on how to dissolve an LLC.
The first step to dissolving an LLC is for your members to officially agree to close the business. Members who decide to dissolve the company are taking part in something called voluntary dissolution.
Vote to dissolve the business following the procedures set out in your organizational documents. The operating agreement of your LLC should outline the termination procedure for your LLC. Once everyone has voted and a majority agrees (or a dissolution trigger has occurred), record the decision to dissolve the LLC and keep it with the company's official records.
Depending upon where your business is located, paperwork may be required for dissolution. A top-ranking Houston LLC dissolution attorney will help to identify the correct documents that need to be completed and filed.
If your LLC is registered to do business in other states, you are required to file a form to withdraw your right to transact business in that state. Each state handles foreign business entities differently, so make sure to check each relevant state's laws for specifics. If you fail to file the appropriate form, you will continue to be liable for paying minimum taxes and annual report fees even if you cease all business operations.
In some states, you must obtain a tax clearance, consent to dissolution, or verification of good standing from your state tax agency before you are allowed to formally dissolve your LLC. To get consent or clearance from the tax agency, you need to submit a request electronically or by mail.
Before winding up your LLC, you should first refer to the organizational documents of your company, including the operating agreement or company agreement and the certificate of formation. If you neglect to wind up your company properly, you might be personally liable for the debts of the business. There are several winding up tasks applicable to an LLC, including:
Once all of the winding up tasks have been completed and the required paperwork has been filed, you will need to pay a final fee to the Texas Secretary of State to dissolve your LLC.
Dissolving or terminating an LLC may become necessary for many reasons. If the LLC is no longer in business, it's usually a good idea to terminate the LLC's existence to avoid potential liabilities and unnecessary maintenance fees. Dissolving your LLC in the right way is crucial for your finances and your future.
Whether you run a small or large business, dissolving an LLC in Texas can be complicated. Facing LLC dissolution is often very difficult, even when the business entity is dissolved voluntarily. Our seasoned Houston LLC dissolution attorneys at GK Law PLLC have the necessary experience to ensure the process goes efficiently and smoothly. We will help you identify the steps necessary to dissolve your LLC and ensure that you do not open yourself up to unnecessary liability. We also provide legal representation for clients who are facing legal matters related to business law, real estate law, and condemnation law. Contact our business law firm today to schedule a consultation and obtain the sound legal advice you need.