To dissolve a limited liability company one has to take up a set of required steps. In Nebraska, if you and the members of the LLC want to discontinue business, then it is necessary to dissolve their business legally to avoid any administrative and legal consequences. To dissolve an LLC in Nebraska, you are required to submit a complete Article of Dissolution to the Secretary of State. Before submitting the Article of Dissolution, one must follow the operating agreement.
If you have a Nebraska LLC (domestic or foreign) you must have an operating agreement. The first step towards the dissolution of Nebraska LLC is to follow the operating agreement. There are some points to be noted before proceeding with the official paperwork. At first, make sure all the members of the LLC are agreed to dissolve the business. Once all the members are ready, their consent should be recorded via voting. After casting their vote in favor of the dissolution, the legal process must be started. Here are the steps to address for dissolving Nebraska LLC.
On this page, you’ll learn about the following:
- How to Dissolve an LLC in Nebraska
- After Dissolving Your LLC
- Reasons Behind Dissolving Nebraska LLC
- Nebraska LLC Dissolution Review
How to Dissolve an LLC in Nebraska
Dissolution of Nebraska LLC requires three broad procedural steps. Having a Nebraska LLC Operating agreement, close all the tax accounts, and finally submit the Articles of Dissolution form to the Nebraska Secretary of State.
Step 1: Follow Your Nebraska LLC Operating Agreement
When you have started an LLC as a business entity, then there is an operating agreement that is formed. There are complete details of how the company will function and grow in that operating agreement, which acts as a comprehensive guide. There is also a dissolution process, which is added to your agreement. The common dissolution steps that almost every LLC follows are:-
First of all, the dissolution vote will take place among the LLC members in the dissolution meeting. If the majority is with the YES, then the process goes into legal proceedings.
- All the dissolution votes will be noted down and recorded with the minutes of the meeting or a consent form.
- After that, a formal date for dissolving the LLC will be decided.
- The next step is counting the LLC assets and dividing them among the stakeholders and members accordingly.
- Finally, the creditors of the business are notified, and the debts of the business are settled.
This is a general process. However, it is strongly recommended to seek professional help to avoid any complications when it comes to terminating an LLC.
Get a Professional Agent Service
When it comes to a limited liability company dissolution, it is important to get professional help. The Nebraska registered agent will guide you with everything you need to close your limited liability company. While choosing a registered agent make sure they have a physical street address in the state. A professional service provider helps you to file the Article of Dissolution and close your various tax accounts without any hassle. Below are the best LLC services we strongly recommend for you.
Step 2: Close All Tax Accounts
Every action that an official business takes is legally bound to some minimum business taxes. For that, various accounts, especially business entity tax account, are maintained by the state government with the help of various departments. You should consider all the taxes that you have paid for your LLC’s duration and make a list of them.
You must contact all government entities and clear the amount of outstanding taxes due until the date you have decided for dissolution. All the taxes must be paid in advance so that you don’t face any issues in the further process of shutting down your LLC.
Some of the common taxes that limited liability companies have to pay are:
- Unemployment insurance tax
- Employee withholding tax if your LLC has employees.
- If your LLC is engaged in selling taxable goods then they are liable to pay the sales and use tax.
Most of these taxes are normally filed, but some departments require official paperwork, without which it is impossible for the business to close their accounts. Apart from business taxes, federal taxes, personal income taxes, and franchise taxes are to be considered. For the franchise taxes, a franchise tax form is required.
That is why the LLC owner should go through the sales tax guide and hire an accounting service. If you want to do the accounting yourself or make accounting easy, try FreshBooks.
While dissolving the Nebraska LLC, the owner does not require to obtain a tax clearance certificate. However, if you have filed federal taxes, then you must go through the final return option on your IRS form.
Step 3: File Articles of Dissolution
There is a list of dissolution documents that you, as an LLC owner, have to file. Once these articles are filed, the legal existence of the LLC will be over. Like a Nebraska Certificate of Formation, one has to file Nebraska LLC Articles of Dissolution. The dissolution procedure and filing the articles of dissolution form is very easy and is discussed below.
- First of all, the LLC owner(s) has to file the Article of Dissolution. There are multiple methods of filing available, such as file by mail, in-person drop, or/and online filing. To get the application form you need to visit the Secretary of State Website of Nebraska state.
- You can follow the filing instruction on the official portal so that the steps for dissolution will be easier to complete.
- In that particular SOS website, the LLC owner has to look for the Domestic LLC Articles of Dissolution page.
- If you want to dissolve Nebraska Foreign LLC then look for the Foreign LLC Dissolution process.
- There is a form available on this page, which is the article of dissolution you are looking for. You have to download that pdf form and start filling it.
- You must fill in all the important and legal information in the form, so you should be extra careful.
- After filling in all the important information, you must choose the mode of payment you want to use to pay the LLC dissolution filing fees.
- After filling in every detail, one should submit the form through an official mail address and make a payment.
- It takes 3-5 business days after filing of articles of dissolution if you are filing it by mail or in-person.
John A. Gale, Secretary of State
Room 1301 State Capitol, P.O. Box 94608
Lincoln, NE 68509
Online FIling: Nebraska Online LLC Dissolution
Filing Fee: $10+$5 for Each Page
The LLC you owned is dissolved, and you are free from all the liabilities linked with the LLC and its taxes. A copy of both original articles and recorded articles should be submitted in front of the probate judge. Now it’s his call that he accepts your expedited dissolutions or not.
Points to Be Noted When Dissolving Nebraska LLC
Apart from these three steps, no major dissolution rules are there in Nebraska. However, there are some other tasks one has to keep in mind while dissolving an LLC legally.
There are some purposes of LLC that require some attention even after dissolution, known as winding up. The task of winding up includes.
- For a certain period, the property of a business requires preservation.
- If there is any civil case against the LLC, then the owner needs to finish them.
- Settle all the existing disputes of LLC.
- Transfer all the property of LLC to the names of partners.
- Release all the liabilities that the LLC owes to others.
- Rightful distribution of all the assets among members, according to their percentage of partnerships.
Cost of Dissolving LLC
LLC cost in Nebraska includes the formation as well as dissolution fees. To dissolve an LLC in Nebraska, LLCs have to file an Article of Dissolution. The filing fee is $5. The details are mentioned on the second page of the article dissolution filing form. Following are the ways to pay for the dissolution,
- You can select a payment pick-up option.
- There is an option of direct account transfer through your prepaid accounts.
- LLC owners can also use their Credit cards, providing their complete details and types. Along with that, an original signature is required to authorize the transaction state will make.
After Dissolving Your LLC
After you formally dissolve your LLC, your business name will not be reserved anymore. Any other business entity will be eligible to use your Nebraska LLC name immediately after 120 days of dissolving your LLC. On the other hand, if you have a foreign LLC in other states, then you must comply with the SOS of the state after the dissolution of your LLC in Nebraska. A registered agent can help you do the needful.
Reasons Behind Dissolving Nebraska LLC
Many people want a new business, so they try to dissolve an LLC in Nebraska. The reason for wanting a new business can be many, but it is not the only reason people would dissolve. To dissolve a business, the person should be willing to do it, or the government can obligate it. Yes, many times, people have to dissolve the company under the pressure of the government. Want to know the mixture of these reasons? Check here,
- If there are no more profits in the business and barely make it, they would dissolve.
- The company can reach the goal that they initiated, so they will have to dissolve the company.
- If the company is not paying its taxes, the government can ask them to shut it down.
- Also, if the owners cannot provide the legal place of office with registration, there will be no solution left for the company instead of dissolving.
Top Businesses in Nebraska!
There ate many different industries in Nebraska. People like to start an LLC in Nebraska without giving a second thought. The new sectors can have all that they need with the help of proper info. It is the information that they need, and then it will be their efforts. The state is filled with a lot of great opportunities; check the main sectors here!
- Government enterprises: There are many government services that we need to use. It can be public schools, hospitals, electrical utilities, etc., and due to these services that we use, the industry is making a significant impact on the economy. It represented the GDP by $13.19 billion and gave many other facilities too.
- Manufacturing: It is the work of the manufacturing industry that can add value to raw materials. The industry doesn’t just add the value to raw material, but in GDP, i.e., $12.06 billion. There is the largest production of food products mainly and also chemicals and machinery too.
- Agriculture: The state is one of the leading states in the agricultural industry. It stands on the fourth number when we count the most extensive agricultural receipts of all. That is not all, and it provides the state with a well summed up amount to the GDP. The amount totaled to be $10.57 billion for economic growth.
Nebraska LLC Dissolution Review
Time needed: 5 minutes.
Here’s a recap of the steps you must follow when dissolving your Nebraska LLC. Click on the steps in this list if you want to read the full detail.
- Follow Your Nebraska LLC Operating Agreement
Remember that when you started, you created an operating agreement. Use this agreement as a guide in proceeding with the dissolution of your LLC.
- Close All Tax Accounts
Make sure you close all your tax accounts to avoid incurring further costs.
- File Articles of Dissolution
File the article of dissolution to make it known to the state where your LLC operates is that you are indeed no longer in business.
What is the Cost to Dissolve an LLC in Nebraska
To dissolve an LLC in Nebraska you need to file the Statement of Dissolution with the Nebraska Secretary of State through mail or online for $10 + $5 per page.
Whether you are planning to dissolve your LLC in Nebraska or have already been forced to do so, you need to be aware of what you are getting into. It is important to know that there are several steps to follow, as well as some important legal documents that you will need to fill out before you can officially shut down your business. A few of these steps include filing a Statement of Dissolution, closing all accounts, and dissolving any outstanding tax obligations. Depending on the circumstances, you may need to hire a professional service to help you with this process.
The Statement of Dissolution Limited Liability Company form can be found online, or you can ask a professional to file it for you. You will need to include your company’s official business name, the effective date of dissolution, and your signature. The form is available in two different formats, and can be filed either online or in person at the Secretary of State’s office. In addition to the form, you will need to fill out the appropriate contact information, and provide any proof of publication of your notice of dissolution.
The Nebraska Department of State does not provide expedited processing services for filing Articles of Dissolution. Typically, you can expect to receive your documents within a few business days. If you are filing the form online, you will need to pay a $2 surcharge. This extra fee is necessary to cover the costs of the processing of the form.
While you are waiting for the paperwork to be processed, you should also make sure that any outstanding taxes have been paid in full. It is important to clear these accounts before you officially close your business. This will avoid any future complications. You should also contact the tax agency to close any accounts and to cancel any permits you may have. If you do not have the appropriate paperwork, you may need to fill out more forms. Typically, a Certified Public Accountant can assist you with this process.
Whether you are filing the Statement of Dissolution Limited Liability Company form online or in person, you will also need to provide your name, address, and phone number. You will also need to provide a copy of your business’s Statement of Intent to Dissolve form. The State will then review your application to determine whether your business is in good standing or whether it needs to be dissolved. If the application is not completed on time, you may face penalties, and your business may be dissolved.
There are several steps to dissolving a Nebraska LLC, but the steps may vary depending on the date you formed the company. If you are not sure what you need to do, you should consult the Nebraska Department of State. Depending on your situation, you may be able to get your LLC dissolved through an administrative process. However, you may also need to dissolve your business through a winding-up process. You will need to distribute assets between members according to their percentage of ownership in the business. You may also need to notify the Department of Labor, and report your final paycheck withholding and final tax returns.
Yes, in Nebraska, there is a fee of $10 to be paid for filing the Articles of Dissolution. Articles of Dissolution must be submitted to the Nebraska SOS.
No requirement of revenue department clearance is required until the SOS of Nebraska accepts the dissolution form.
The name will also get deregistered with the dissolution of the LLC. But the name will not be allotted for the next 120 days. After that, if some business wants to name their LLC after the name chosen by you, then it is their choice.
If you have not dissolved your LLC, you are liable for business privilege tax, and if it is not paid on time, you are leveraged with 10% of the amount of tax or $50. After that, the additional penalties will increase by $1 per month. If it goes unpaid for a longer duration, then the chances of seizing your property can also recover the tax.
Yes, if you are dissolving your LLC, you have to pay some amount to the probate judge who was also present during your LLC formation in the probate office. The minimum fee of the judge is $50, which can vary.
Limited liability companies reduce owners’ personal liability. Having an LLC is quite cost-effective. However, if it is required to close down the business, then the dissolution process should be done legally. Get a professional service to get everything done. We hope this article helps you to close your LLC in Nebraska. If you have any query do let us know in the comment box.