How to Dissolve an LLC in Vermont: A Simple Guide

Dissolving an LLC in Vermont isn’t too complicated, but you do need to follow a few key steps. The main move is filing Articles of Dissolution with the Vermont Secretary of State, which officially closes the company.

This filing ends the LLC’s legal existence and tells the state your business is done operating. Before you file, though, the LLC has to settle any debts and distribute whatever assets are left.

Clearing up tax obligations with the Vermont Department of Taxes is also a must. That way, you can actually close up shop without surprises later.

Some folks use professional services to make the process smoother. But if you know what’s required, you can avoid delays or headaches.

Key Takeaways

• The LLC needs to file official paperwork to dissolve in Vermont.
• Settle debts and taxes before closing up.
• There are a few post-dissolution steps to wrap things up.

Vermont LLC Dissolution Requirements

Dissolving an LLC in Vermont means following certain state rules and whatever your group agreed on internally. You’ll want to get the right approvals, check your operating agreement, and follow Vermont law to do it right.

Member Approval Process

Members have to agree to dissolve the LLC. Usually, this happens with a formal vote at a meeting or in writing.

The voting rules depend on your LLC’s structure or what’s in the operating agreement. If there’s no special rule, Vermont expects a majority vote of members.

Let everyone know about the meeting or action so the process stays official and fair. Record the decision to dissolve in your meeting minutes or official documents.

Reviewing the Operating Agreement

The operating agreement spells out your LLC’s internal rules, including how to dissolve. Members should look this over before doing anything else.

You’ll usually find voting requirements, timelines, and steps for closing business affairs in there. It might also explain how to handle assets and debts.

If you don’t have an operating agreement, Vermont’s default laws kick in. Still, having a solid agreement makes things smoother and helps avoid fights.

Compliance With Vermont State Law

You need to file the right forms with Vermont to dissolve an LLC. The main one is the Articles of Dissolution, which you submit to the Vermont Secretary of State.

This form asks for things like the date you approved the dissolution and how members agreed. You’ll also need to settle all your tax accounts with the Vermont Department of Taxes, usually online through the myVTax system.

Following these rules helps you dodge penalties or lingering tax bills. Double-checking with official Vermont sites is smart if you want to be sure you’ve covered everything. For more details, see Vermont LLC dissolution requirements.

Save the Hassle and Get Bizzee to Do It For You

As you can see, there is considerable work in doing a dissolution and in the interests of ensuring it is done correctly, many people use a service like Bizee to do the dissolution. It is quick, easy and comparatively cheap.

Filing Articles of Dissolution in Vermont

Filing Articles of Dissolution is what officially shuts down an LLC in Vermont. You’ll need to fill out some paperwork, pay a small fee, and send everything to the Secretary of State.

After you file, the state reviews your documents and confirms the dissolution.

Completing the Articles of Dissolution Form

Fill out the Articles of Dissolution form with your LLC’s legal name and formation date. You’ll need to state why you’re dissolving and confirm you’ve taken care of debts and obligations.

You can grab the form as a fillable PDF from the Vermont Secretary of State’s website. Print it out and have an authorized member or manager sign it.

Make sure your info is accurate—mistakes or missing details can slow things down or get your filing rejected.

Submission Options and Fees

Send the completed Articles of Dissolution in duplicate to the Vermont Secretary of State. That means one original and one copy.

There’s a $20 filing fee, payable by check or money order to “VT SOS.” Mail the documents and payment to the address on the form, or drop them off in person if you’d rather.

Vermont doesn’t offer online dissolution filings at the moment, so you have to submit everything physically.

Confirmation of Dissolution

Once the Secretary of State receives and processes your documents and fee, they’ll review everything. If it all checks out, they’ll officially record the dissolution.

You’ll get a certificate or official acknowledgment confirming your LLC’s legal status has ended. That means you can stop filing reports and paying taxes tied to being in business.

Your LLC no longer exists legally as of the approval date. For forms and step-by-step help, check Vermont’s Articles of Dissolution page.

Using an LLC formation service

Honestly, using an LLC formation service can make dissolving a Vermont LLC way less stressful. These services handle the paperwork and details, which saves time and helps you avoid mistakes.

They’ll walk you through each step and make sure your forms are filled out right. That means fewer delays from missing info or errors.

Bizee is one option people like. It lets you submit your dissolution documents online and offers support if you get stuck.

Benefits of using a service like Bizee:

• Saves time with automated form filling
• Cuts down on legal document mistakes
• Offers expert guidance and customer help
• Handles submission to the Vermont Secretary of State

This route is great if you’re not comfortable with legal forms or just want things done without hassle. It streamlines the process and helps you meet Vermont’s requirements without much effort.

Post-Dissolution Steps and Legal Obligations

After you file the dissolution paperwork, you’re not quite done. The LLC still needs to handle a few financial, tax, and communication tasks to close things out properly.

Settling Debts and Liquidating Assets

Pay off any outstanding debts before distributing assets to members. This covers loans, bills, and taxes owed.

If you skip this, members could end up personally liable. Sell or transfer any equipment, inventory, or property.

Use the money from those sales to pay off debts first. Whatever’s left gets divided according to your operating agreement or Vermont law.

Keep solid records of every transaction. You’ll want that documentation in case questions pop up later or for your final tax filings.

Filing Final Taxes

The LLC needs to file a final tax return with both the IRS and Vermont’s tax department. Mark it as “final” and report all income and expenses up to your closing date.

Don’t forget to pay any last payroll, sales, or other business taxes. Cancel your tax accounts with state and federal agencies so you don’t get hit with future charges you thought you’d left behind.

Hang onto copies of all your tax forms and payment receipts. You never know when you’ll need them for your records or if an audit comes around.

Notifying Creditors and Stakeholders

The LLC needs to let all creditors know about the dissolution. You can send individual notices or make a public announcement, depending on what fits best.

It’s important to tell stakeholders too, like employees, clients, and suppliers. Giving everyone a heads-up lowers the chance of arguments or unexpected claims later.

Make a list of everyone you need to notify. Keep some kind of proof that you reached out—emails, letters, whatever works—just in case someone questions it down the road.

If you want more details, check out How to dissolve an LLC in Vermont in 7 steps – Sunset.