Although most states use a similar winding up process, limit the LLCs liability for lawsuits and government fees by first contacting your state's secretary of state to check for any special or state-specific requirements.
Make a formal decision to liquidate or dissolve an LLC by taking a vote to dissolve according to procedures outlined in the LLC articles of organization or in an operating agreement.
Liquidating a limited liability company involves more than simply making a decision to cease business operations by closing the doors.
Inventory the assets your business owns and wishes to liquidate.
Your list should include a detailed description of each item, photograph, purchase information, condition, warranty certificates and repair records, if applicable.
When is the time to consider the asset liquidation process?
The three main reasons businesses consider liquidating assets are 1) when assets are no longer needed (surplus assets), 2) the business needs additional working capital, or 3) to satisfy creditors.
Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation.
The process of liquidation also arises when customs, an authority or agency in a country responsible for collecting and safeguarding customs duties, determines the final computation or ascertainment of the duties or drawback accruing on an entry.They have been too close to the business for years and know the 24/7/365 routine required to be successful in many small businesses.And they're attracted to the high salaries and benefit packages offered in the corporate world.But for many small business owners, liquidating assets is often the best or perhaps only feasible method of exiting their businesses, especially retail businesses.The reasons for this are numerous: Your heirs may want nothing to do with a takeover or succession plan.This is used, for instance, when a retail establishment wants to close stores.