Voluntary dissolution of a business might occur for many reasons, with the most common being management deadlock or unprofitability. There is also involuntary dissolution, where a company’s state of incorporation dissolves a company if that company has failed to file annual reports with the state, pay annual fees and/or taxes, or is encountering bankruptcy.
Is the dissolution process different for a limited liability company (LLC) than for a corporation?
The existence of LLCs is less stable than that of corporations in the sense that an outside occurrence (such as the death of an owner) can end the company’s existence, depending on the operating agreement. Otherwise, the dissolution process is the same for both entities.
If I registered my company to transact business in other states, so I need to dissolve in those states too?
Yes. If you have registered to transact business (foreign qualified) in a state or states other than your state of incorporation, you need to dissolve in the state of incorporation and the state(s) of qualification.