Idaho Dissolution
The hardest part of closing a business is coming up with that decision. It takes a lot of guts to start a company. Reaching the point of having to close it can be heartbreaking. However, that is only the first step because the business owner has to ensure the proper closure of the company based on state law.
What Is Idaho Dissolution?
If your company conducting business in Idaho has decided to cease its activities, it has to inform the Secretary of State about its intention. To do this, it has to undergo the dissolution process. Each state may have different regulations. Make sure your company follows the proper steps that Idaho requires.
Why Does A Company Dissolve?
Why do companies need to dissolve? – Business owners in Idaho created their companies with the approval of the state. Likewise, they will also have to file formal paperwork to formalize the closure. This way, the state will know that the company will no longer operate and have no more obligations to submit reports and pay for business taxes.
Who makes the decision to dissolve? – LLC members will decide on the fate of LLCs in Idaho. Meanwhile, shareholders of a corporation will need to vote on the dissolution once the board of directors has approved the resolution to dissolve the company.
How long does it take to dissolve a business? – The time frame that your company requires to finish the whole process may vary from several days to weeks. Accomplish all necessary actions as soon as possible to avoid delays. After completing all initial actions, you can file the documents with the Secretary of State. You can expect the processing to take around 7 business days.
What Happens If Your Company Does Not Formally Dissolve?
Your company remains an active business until you formally dissolve it. Thus, you will have to continue filing annual reports and paying for business taxes. Idaho may have no penalty for late filings, but you may still encounter other issues if you do not close your business properly.
Steps To Dissolve Your Business
Make sure you follow every step carefully to ensure that your business in Idaho will have proper closure.
1. File Articles of Dissolution with the state – Idaho allows companies to file for dissolution using their SOSBiz accounts. If you choose to do this, all you need to do is choose the terminate business option. Otherwise, you can fill out a Statement of Dissolution Limited Liability Company or Articles of Dissolution for corporations. File the form in duplicate with the Secretary of State by mail or in person.
2. Remove all liabilities and obligations – The winding up of your company includes many tasks. Liquidate all its assets. Remove liabilities depending on the priority outline the law implements. If your company has remaining assets, you can distribute them depending on the rights and interests of members or shareholders.
3. Give notice to any claimants – Inform all known claimants by sending a written notice to them. You can check the records of the company to find out where you can send the said notice. Include in the notice necessary information, such as where and until when they can submit their claims. You may also choose to publish a notice in a newspaper to let unknown claimants know about your company’s dissolution.
4. Tax clearance – The state does not require businesses to obtain tax clearance before dissolving. However, you should make sure that your company has paid for all taxes due.
5. Close all bank accounts, credit lines, permits, and licenses – If your company has opened business accounts in a bank, close them. Contact the bank for the requirements and process. You will not be able to use the bank accounts for other businesses or purposes, so it will be best to close them.
Your company may have obtained licenses or permits with the state, region, county, or city. Cancel all of these to avoid any reporting or encountering fiscal obligations.
How DoMyLLC can assist with streamlining the process
Some people find the multi-step process confusing. That is where we come in. Our team of experts can assist your company by providing live support. You can also get a personalized solution from us. Contact us now and find out how we can reduce your stress when it comes to the dissolution of your company in Idaho.
Idaho Dissolution FAQs
Is There A Filing Fee To Dissolve The Business?
LLCs do not have to pay for a filing fee when they dissolve. However, corporations need to pay for a $30 filing fee.
Do You Need The Department Of Revenue Clearance Before The Secretary Of State Will Accept Your Dissolution?
No, Idaho does not require companies to obtain clearance.
How Long Does The State Take To Process The Dissolution?
The state normally takes about a week to process documents for dissolution.
When Can Another Business Use Your Company Name?
Another business entity can immediately request to use your company name a day after the Secretary of State processes your dissolution documents.