What is South Dakota LLC Dissolution? |
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A South Dakota LLC is created when the SD Secretary of State approves the Articles of Organization.
A record of the South Dakota LLC is added to the list of LLCs which have officially registered with
the South Dakota Secretary of State.
Once a LLC is registered with the South Dakota Secretary of State, that LLC immediately has both reporting and tax
obligations which incur penalties if the obligations are not met by the required deadlines.
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A South Dakota LLC is created when the SD Secretary of State approves the Articles of Organization.
A record of the South Dakota LLC is added to the list of LLCs which have officially registered with
the South Dakota Secretary of State.
Once a LLC is registered with the South Dakota Secretary of State, that LLC immediately has both reporting and tax
obligations which incur penalties if the obligations are not met by the required deadlines.
If you've registered a South Dakota LLC with the South Dakota Secretary of State and want to cease business activities
you have to let the SD Secretary of State know that you intend to close your company.
Only after the SD Secretary of State has made sure that all of the obligations of the South Dakota LLC have been fulfilled will
the Secretary of State approve of the closure of the company.
When the South Dakota Secretary of State approves the closing of a SD LLC, that South Dakota LLC is said to be
Dissolved.
The process of Dissolving a South Dakota LLC is called South Dakota LLC Dissolution.
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Why do I need to Dissolve a South Dakota LLC? |
As soon as a South Dakota LLC is registered with the SD Secretary of State, that LLC is responsible for
recurring obligations of the South Dakota Secretary of State and the South Dakota Department of Revenue.
If the South Dakota LLC does not file reports or pay taxes then that SD Limited Liability Company could be responsible for
penalties which go up as time goes by.
Unless you Dissolve your South Dakota LLC with the South Dakota Secretary of State that SD Limited Liability Company will be responsible for
all recurring fees and penalties.
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What do I have to do to Dissolve a South Dakota LLC? |
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South Dakota LLC Dissolution is one part of a larger process commonly called the "Winding Up" process.
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South Dakota LLC Dissolution is one part of a larger process commonly called the "Winding Up" process.
There are things you need to do before you can request approval of LLC Dissolution from the South Dakota Secretary of State;
and things that you have to do after the SD Secretary of State has approved Dissolution of the South Dakota LLC.
What you have to do both before and after the South Dakota LLC is Dissolved largely depends on if the South Dakota LLC has commenced business
and how many assets, debts and liabilities, if any, that the SD Limited Liabilty Company has.
If the South Dakota LLC has not commenced business then the SD Limited Liability Company Dissolution process is easier.
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What do I have to do before I Dissolve a South Dakota LLC? |
Things you need to do before you Dissolve a South Dakota LLC.
1. Hold a Members meeting and record a resolution to Dissolve the South Dakota LLC
2. File all required Annual Reports with the South Dakota Secretary of State
3. Clear up any business debt
4. Pay all taxes and administrative fees owed by the South Dakota LLC
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1. Hold a Members meeting and record a resolution to Dissolve the South Dakota LLC
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If the South Dakota LLC has any Members then a meeting should be held and a vote to Dissolve the South Dakota Limited Liability Company taken.
Minutes of the meeting should be recorded and retained in the business records.
If the South Dakota LLC does not have any Members then the Organizer(s) have to apply for Dissolution of the South Dakota LLC.
- We can transcribe and compile minutes or approvals into a form that is legally recognized by the South Dakota Secretary of State.
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2. File all required Annual Reports with the South Dakota Secretary of State
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The South Dakota Secretary of State will not approve the Dissolution of a SD LLC until all required
reports have been filed.
- We can file any required Annual Report with the SD Secretary of State.
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3. Clear up any business debts
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All creditors of a South Dakota LLC should be given notice of the pending LLC Dissolution.
Each creditor should be given a mailing address to which they may submit claims as well as a deadline by which claims may
be submitted.
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4. Pay all taxes and administrative fees owed by the South Dakota LLC
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The South Dakota Secretary of State will definitely not approve the Dissolution of a South Dakota LLC until all
outstanding taxes and applicable registration and administrative fees have been paid.
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What do I have to do after I Dissolve a South Dakota LLC? |
Things you have to do after you Incorporate in South Dakota.
1. Distribute all remaining assets of the South Dakota LLC
2. Close all business bank accounts of the South Dakota LLC
3. Cancel all local business licenses and permits
4. File Form 966 with the IRS
5. Cancel the IRS account associated with the SD LLC's Federal Tax ID (EIN)
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1. Distribute all remaining assets of the South Dakota LLC
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If the South Dakota LLC has any remaining assets, these may be divided according to the Members' ownership interests
in the SD Limited Liability Company.
All distributions to LLC Members must be reported to the IRS.
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2. Close all business bank accounts of the South Dakota LLC
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If there are any business accounts that have been opened for the South Dakota LLC then those accounts must be closed.
If Company Business accounts are left open there may be liability and obligations of the Dissolved South Dakota LLC which could
lead to legal problems down the line.
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3. Cancel all local business licenses and permits of the SD LLC
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If the South Dakota LLC has obtained any state, regional, county or city business licenses or permits, each
of those must be cancelled to avoid any reporting or fiscal obligations of the South Dakota LLC.
This includes business registration licenses as well as reseller permits.
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4. File IRS Form 966
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Most Dissolved South Dakota LLCs must file IRS Form 966 with the US Internal Revenue Service.
If a South Dakota LLC is required to file IRS Form 966, the filing is required within 30 days after the final Dissolution
plan is approved.
Filing IRS Form 966 lets the Federal Government know that the South Dakota LLC has been legally Dissolved
so that it may take the appropriate actions.
- We can prepare IRS Form 966 for you to file.
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5. Cancel the IRS account associated with the SD LLC's Federal Tax ID (EIN)
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A Federal Tax ID, or Federal Employer Identification Number (EIN), is like the Social Security Number for the South Dakota LLC.
Once the IRS links an EIN to a South Dakota LLC, that EIN stays with the South Dakota LLC even after the Company has been Dissolved by the
South Dakota Secretary of State.
When the IRS processes the final tax return for the South Dakota LLC, they automatically make the EIN inactive.
However, the account associated with the EIN is not automatically closed.
Closing the account associated with the EIN lessens the likelihood of any problems with the EIN account, or with the IRS, in the future.
If you should decide to revivie the South Dakota LLC down the line then the IRS will reactivate the old EIN for your new Business.
Before a South Dakota LLC can close an EIN account, it must be in Good Standing with the IRS.
The South Dakota LLC must have filed all required tax returns and paid any applicable fees and penalties due to the IRS.
The South Dakota LLC cannot close its EIN account until the IRS has received payment for any tax amounts the Company may owe.
- We can prepare the formal documents which you can sign and submit to the IRS in order to close the account
associated with your EIN.
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How long does it take to Dissolve a South Dakota LLC? |
The time it takes to Dissolve a South Dakota LLC varies depending on how long it takes to complete the actions that are
required in each specific case - holding meetings, closing accounts, distributing assets, etc.
Once the initial actions are completed, the South Dakota Secretary of State usually takes around 3-5 business days to process the Articles of Termination.
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The time it takes to Dissolve a South Dakota LLC varies depending on how long it takes to complete the actions that are
required in each specific case - holding meetings, closing accounts, distributing assets, etc.
Once the initial actions are completed, the South Dakota Secretary of State usually takes around 3-5 business days to process the Articles of Termination.
Processing times for South Dakota LLC Dissolution filings vary depending on the work load of the
Secretary of State's staff.
We've found that normal processing of South Dakota Dissolution filings takes the state around 3-5 business days.
PLEASE NOTE: WE CANNOT GUARANTEE SOUTH DAKOTA SECRETARY OF STATE PROCESSING TIMES.
We are dependent on, and have no control over, the staff and systems of the South Dakota Secretary of State .
In our experience 3-5 business days is the time it usually takes the South Dakota
Secretary of State to process a South Dakota Dissolution filing.
We get your South Dakota LLC Dissolution filing to the SD Secretary of State ASAP.
Once it is at the state we have no control over the South Dakota Dissolution approval process.
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How much does it cost to Dissolve a LLC in South Dakota? |
The total cost to Dissolve a South Dakota LLC varies depending on exactly what is required for each specific
SD Dissolution.
We charge $224.00 plus any state fees for our South Dakota LLC Dissolution services. This includes:
- Same day processing
- Transcribe minutes of Members meeting which proposes Dissolution
- Prepare and file Articles of Termination with the South Dakota Secretary of State
- Prepare US IRS Form 966 for you to sign and file
- Prepare documents to cancel Federal EIN account
- Certified copy of Dissolution filing from SD Secretary of State
- Priority Mail Delivery of all documents
- Unlimited Customer Support
We also offer these South Dakota LLC Dissolution services separately as explained on the right side of this web page.
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What do I have to do if I want to Dissolve a Foreign LLC that is tied to a SD Domestic LLC? |
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If there are Foreign LLCs in states other than South Dakota that are tied to the Domestic South Dakota LLC then
each of those Foreign LLCs must be Dissolved before the South Dakota LLC is legally Dissolved.
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How long before someone can use my LLC name in South Dakota after I Dissolve? |
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A South Dakota Limited Liability Company company name becomes available for anyone to use when the South Dakota LLC is Dissolved by the South Dakota Secretary of State.
There are no LLC company name protections in South Dakota once a SD Limited Liability Company has been Dissolved by the South Dakota Secretary of State.
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Do I have to publish a Notice of Dissolution of the South Dakota LLC? |
There are no state of South Dakota requirements for the publication of a Notice of Dissolution of a South Dakota LLC.
While the South Dakota Secretary of State does not legally require the publication of a Notice of Dissolution of a South Dakota LLC, publication is
a good way to notify anyone who might have a claim against the South Dakota LLC.
Evidence of publication might prove useful down the line if someone makes a claim against the SD Limited Liability Company after
the South Dakota LLC has been dissolved.
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