Saying Goodbye: How to Dissolve an LLC in Ohio

Winding up and saying goodbye to a business can be anything from sad to liberating. However, legal steps to dissolve an Ohio LLC are essential to close business affairs and protect the LLC owners.

Whether you want to set up an LLC  or dissolve it, get it done with doola so you won’t have to worry about the tedious paperwork. Submit the required documents, and we will take care of the rest.

The procedure to close an Ohio LLC is not complex, and you can elect to dissolve one at any time. Read on to understand how to dissolve an LLC in Ohio.

Understanding LLC Dissolution in Ohio

Dissolving an LLC in Ohio can make sense if you created an LLC that you don’t need anymore, if the company is no longer economically viable, if the LLC’s purpose is completed, or for various other reasons. Dissolving a limited liability company can be best if you move on to other business ventures. 

To dissolve an LLC in Ohio, you must comply with Ohio’s revised code 1706.471. This involves filing a Certificate of Dissolution with the Ohio Secretary of State and paying a $50 filing fee. 

Why Dissolve an LLC in Ohio?

In many instances, dissolution is the best choice for an Ohio LLC, such as when you no longer want to operate the LLC or want to pursue another business venture.

If you’re a visa holder who created an LLC, you don’t need to dissolve an Ohio LLC that is still in use or has a business purpose, even if you’re no longer in the US. 

Generally, business owners may choose to dissolve an Ohio LLC because of:

• Loss of business viability 

• Bankruptcy

• Moving on to other business opportunities 

• Closed business activities

• Limitations to business operations in the US 

Examples of why you might close an Ohio LLC include: 

• You created an LLC for a rental property and sold the property.

• You created an LLC for an online business that you no longer operate. 

• The business has merged with another company, and the LLC is no longer needed.

• You created an LLC with the intention of starting a business but never started.

How to Dissolve an LLC in Ohio in 7 Steps

To dissolve an LLC in Ohio, you’ll need to follow the steps outlined in the company’s operating agreement as an owner of the LLC. You’ll need to complete the winding-up process for business assets and liabilities. Follow the steps below to get started.

1. Review Your LLC’s Operating Agreement

Understanding the specific dissolution procedures outlined in your LLC’s operating agreement is essential. This agreement will include key information on members’ ownership and voting rights within the LLC and specify the signatures, voting, or other procedures required to dissolve the LLC. 

2. Vote to Dissolve an LLC

Convene and meet with all LLC members to discuss and approve the dissolution decision. Based on guidelines outlined in the operating agreement, this can be done online or in person and may require unanimous agreement. 

3. File Articles of Dissolution

Prepare and file the necessary legal paperwork, Articles of Dissolution, with the Ohio Secretary of State. You must include a cover letter with the filing, and the form must be typed.

Ohio requires a $50 filing fee. You can request expedited service that costs $100 for processing within two business days, $200 for processing within one business day, or $300 for processing within four hours. 

You can file online or through the mail. Online filings can be completed at the Ohio business portal, or you can mail the Articles of Dissolution to:

Regular Filing (non-expedited) 

P.O. Box 1329 

Columbus, OH 43216

4. Notify Tax Agencies and Pay Remaining Taxes

Ensure you file all necessary tax returns, including income and employment tax returns, with the appropriate tax authorities and pay all LLC tax obligations as part of dissolution.

When filing taxes with the IRS, you must check the final return box on your company’s federal tax forms. Consult a tax professional or CPA to ensure the LLC meets all tax filings and the correct forms. 

5. Inform Creditors and Settle Existing Debt

The next step to winding up a business is to settle all debt. Plan to pay off all credit card debt or loans and fulfil obligations with creditors. You should also notify creditors and close any lines of credit as part of dissolving an LLC to close the business credit history.  

6. Wind Up Other Business Affairs

As part of closing an Ohio LLC, you must take additional steps to wind up the business, including selling machinery, inventory, or assets. You must also inform suppliers, customers, and other key stakeholders.

If you have employees, inform them and make relevant plans for a severance package, letters of recommendation, or new job opportunities. 

If you used a Registered Agent service, inform the registered agent and cancel the service. Finally, close business bank accounts, cancel business licenses, and close any other business accounts or lines of credit. 

7. Distribute Remaining Assets

Once all debts and liabilities are covered, the remaining assets can be distributed to LLC members according to the operating agreement.

Assets are distributed according to each LLC member’s ownership percentage and any other stipulations in the operating agreement.

Once all debts, obligations, and tax liabilities have been settled, you can distribute the remaining assets among the LLC members to finalize business dissolution. 

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

It costs $50 to file the Articles of Dissolution in Ohio. In addition, you can opt for expedited service that takes between 4 hours and 2 days and costs between $100 and $300, depending on your chosen processing speed. 

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

You can choose to dissolve an LLC, including ensuring all the steps of winding up the business. However, as a business owner, getting professional help can save time and money.

Consult a tax professional, lawyer, or professional dissolution service who can provide essential expertise to wrap up the business while ensuring compliance. 

Tapping into professional assistance to facilitate the process can offer significant benefits even with a simple dissolution. You could hire professionals to handle the dissolution to free up your time to focus on new opportunities. 

How doola Can Help You Dissolve an Ohio LLC

Dealing with dissolution paperwork and ensuring correct filing can be an additional burden. doola offers customized LLC dissolution services to help you close the business easily. 

Sign up with us and upload basic information about your company to start your LLC dissolution.

Then, doola will prepare the Articles of Dissolution and get back to you if any additional information is needed.

When Ohio confirms the dissolution, it will inform you immediately.

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