DISSOLVE AN LLC IN NEVADA

How do you dissolve an LLC in Nevada? How long does it take?

A limited-liability company is an independent business entity and it can continue to exist in Nevada unless it is officially or legally dissolved. If you have taken a decision to close a Nevada LLC then the process needs to be initiated as quickly as possible so that it avoids any legal issues, tax liability or penalties.

• If a specific time of dissolution has been specified in the articles of organization
• If a dissolution should take place due to the occurrence of a specific event as mentioned in the operating agreement
• Dissolving Nevada LLC upon written agreement or affirmative vote from all the members of the LLC

What is the cost of dissolving an LLC in Nevada?

If you want to close an LLC in Nevada then you will be required to file for dissolution with the secretary of state. The filing fee for dissolution is $100, also there will be $3 fee for state payment processing fee and our processing fee $89. Apart from this, if you wish to receive a certified copy of the Nevada LLC dissolution then it will be an additional $30.00 per certification.

Steps to Dissolve an LLC in Nevada

If you plan to close a Nevada LLC then there are certain aspects of dissolution you need to be familiar with. There are times when businesses make the mistake of not focusing on certain key areas resulting in the dissolution documents not being accepted by the Secretary of State. These steps will ensure your limited liability company is dissolved in the proper way.

1. Meeting of LLC Members

The first and the foremost step towards dissolving Nevada LLC, is to arrange a meeting among LLC members or owners. There has to be a vote to dissolve the limited-liability company and everyone needs to agree on adopting a resolution to that effect. The resolution must include payment of all outstanding debts, obligations, and distribution of assets.

2. Close Tax Accounts of Your LLC

The second most important step towards dissolving an LLC in Nevada, is to ensure closure of all business tax accounts. An active Nevada limited-liability company may have several tax accounts like Modified Business Tax, Commercial Tax, or Federal Taxes and each of these accounts are maintained by IRS or the State government. Hence, you need to coordinate with the IRS as well as local taxing agencies to ensure all tax dues are cleared.

• Quarterly or annual employment tax return: This includes the Employee Withholding Tax and is for businesses that have or had employees. Normally businesses are required to file Forms 941 but small businesses withholding federal income taxes less than $1,000 have to file Form 944.
• Sales & Use Tax: If your business has been selling taxable services or products in Nevada then you need to clear the dues prior to dissolving a Nevada LLC. This is a monthly or quarterly tax that has to be filed with the Nevada Department of Taxation.
• Unemployment Insurance Tax: Each and every LLC formed in the state of Nevada has to pay unemployment insurance (UI) tax at a rate of 2.95 percent of the wages paid to each of the employees.
• Career Enhancement Program: Apart from unemployment tax, a limited liability company will be required to pay a tax of 0.05 percent of taxable wages for the Career Enhancement Program (CEP) in order to close a Nevada LLC.
• Commerce Tax: A limited-liability company will have to pay this tax only if their gross revenue exceeds $4,000,000 in a taxable year.
• Make federal tax deposits: In order to close a Nevada LLC, you will be required to file the “Employer’s Quarterly Federal Tax Return” using Form 941.

3. Filing Articles of Dissolution

The process of dissolving Nevada LLC starts by filing “Articles of Dissolution” with the Secretary of State. The Articles are to be submitted by a limited-liability company that has opted for voluntary dissolution. The articles need to contain the following information pursuant to NV Rev Stat § 86.531 (2017):

• The name of the Nevada limited-liability company
• That the company has already been dissolved or will be dissolved
• The effective date and time of dissolving the Nevada LLC
• The type of dissolution or cancellation

4. Notifying creditors and settling claims if any

If you are dissolving a Nevada LLC, it is important to notify your creditors about the closure of the business. This is an integral part of distribution of assets and is governed by NV Rev Stat § 86.521 (2017). You need to inform creditors about:

• The intent to close your Nevada LLC or if you have filed the required documents for dissolution
• If any creditor has an outstanding claim then you will need to provide the mailing address where they can send their claim
• Provide creditors with a deadline for submitting their claim. The standard is 120 days from the date of notification of dissolving a Nevada LLC
• Provide a statement that no claims will be entertained after the deadline

5. Distribution of Remaining LLC Assets

In order to close a Nevada LLC, the remaining assets have to be distributed amongst the members in proportion to their share of ownership or ownership interests pursuant to NV Rev Stat § 86.521 (2017).

For example: If A owns 40% of the LLC, B owns 35%, and C owns 25% then the assets will be distributed accordingly, which means A will get 40 percent of remaining assets and so on.

We can file Articles of Dissolution on your Behalf!

DISSOLVE LLC IN NEVADA

How IncParadise helps you

Whether your company is a single-member LLC or has multiple members, dissolving an LLC in Nevada or an active business comes with its own set of problems and documentation including setting of taxes or claims. Apart from this, you also have to ensure that the dissolution is in accordance to the Nevada Revised Statutes § 86.505 – § 86.541 (2017). You will also have to be quite thorough when it comes to filing the articles of dissolution, especially ensuring the required provisions as mentioned in NRS 86.531 have been complied with. Sounds exhaustive?