How to Dissolve a Single-Member LLC

Good news: dissolving a single-member LLC is simpler than a multi-member one: there's no vote to coordinate. But you still have to file with the state and close out taxes, or the fees keep coming.

What's different (and what isn't)

• No member vote needed: as the sole owner, you decide. Just record the decision in writing.
• Same state filing: you still file the Articles of Dissolution / Certificate of Cancellation for your state.
• Simpler taxes: a single-member LLC is usually a disregarded entity, so it's a final Schedule C on your personal return rather than a separate partnership return.

The full process

1. Vote to dissolveHold a member vote (or follow your operating agreement) and record the decision in writing. This is the legal trigger for winding up.
2. Wind up the businessStop taking new business, finish existing obligations, collect receivables, and make a list of every asset and debt.
3. Notify creditors & settle debtsTell known creditors, pay what you owe, and resolve claims. Do this before distributing anything to members, otherwise members can become personally exposed.
4. File the state dissolution formFile your state's dissolution form with the Secretary of State. The exact name varies by state: Articles of Dissolution, Articles of Termination, or a Certificate of Cancellation (your state guide below shows the precise form, fee, and filing method). A few states (Texas, Pennsylvania, and others) require tax clearance before they'll accept this filing: check your state's notes first.
5. Close federal & state taxesFile a final federal return (check the "final return" box), file final state returns, and handle final payroll/1099s. Cancel your EIN with the IRS by letter once done.
6. Cancel licenses, permits & registrationsCancel business licenses, seller's permits, DBAs, and any foreign-state registrations so fees and filings stop accruing.
7. Close accounts & keep recordsClose business bank accounts and credit lines after final payments clear. Keep dissolution records and final returns for at least several years.