If you have a limited liability company (LLC) in Nevada, you may need to shut down the business. On the other hand, maybe you’ve started anotherco ...
How to Dissolve (Close) an LLC in Connecticut
Written by: Carolyn Young
Carolyn Young has over 25 years of experience in business in various roles, including bank management, marketing management, and business education.
Reviewed by: Sarah Ruddle
For over 15 years, Sarah Ruddle has been a noteworthy leader in the business and nonprofit world.
Updated on July 16, 2024
How to Dissolve (Close) an LLC in Connecticut
- Vote for Dissolution
- Cancel Business Licenses and Permits
- Notify Creditors
- Notify Tax Departments
- Cancel Contracts and Settle Financial Obligations
- Distribute Assets to Members
- File the Dissolution Papers with Connecticut
- In Closing
- FAQs
If you have a limited liability company (LLC) in Connecticut, you may need to shut down the business at some point. On the other hand, maybe you’ve started another company or decided to relocate to another state— whatever the reason, you’ll need to follow the somewhat complicated LLC dissolution process.
If done incorrectly, you’ll still be responsible for annual reports and fees and could face penalties down the line. But, lucky for you, this handy guide explains how to dissolve an LLC in Connecticut.
Properly shutting down an LLC involves several crucial steps, as detailed below.
1. Vote for Dissolution
LLC owners, known as members, must vote to dissolve the LLC. Hopefully, you have an operating agreement that details the process. If not, Connecticut law requires you to gain consent from most members. Once you do so, you’ll need to draft a resolution to dissolve the LLC.
2. Cancel Business Licenses and Permits
If you were required to get licenses and permits for your business, you’d need to contact the issuing agencies to cancel them so that you’re not charged renewal fees. If you have any outstanding fees, you’ll likely need to pay them before you are allowed to cancel.
3. Notify Creditors
If you owe money to any creditors, you should notify them in writing of the dissolution and give them detailed instructions on filing any claims for the outstanding debt. In Connecticut, you must provide a mailing address for claims and a deadline of at least four months for claimants to file a claim.
4. Notify Tax Departments
Notify any relevant tax authorities of the dissolution and pay any outstanding taxes due. You’ll have to file a final tax return with the Department of Revenue Services, which can be done on their website.
5. Cancel Contracts and Settle Financial Obligations
If you have contracts with vendors, lessors, or any other outstanding financial obligations, you’ll need to ensure all your obligations are fulfilled and all contracts are canceled.
6. Distribute Assets to Members
If the LLC has any assets remaining in any form after all financial obligations have been settled, they must be distributed to members based on LLC ownership percentages. If the assets are equipment, property, or other non-cash assets, they’ll need to be sold first so distributions can be made in cash.
7. File the Dissolution Papers with Connecticut
In Connecticut, the Secretary of the State will process your dissolution papers. You can either file online, digitally submit a paper filing, or file physically. In all cases, filing your Certificate of Dissolution is free.
Online Filing
You can also file online through Connecticut’s online Business Center. First, create an account, and select “Dissolve my Business” on the left-hand menu.
Click “Start Now.”
On this page, search for your business. Once you’ve selected it, scroll down to the bottom and click “Next.”
Go through the Dissolution Details and specify an exact date and time for your dissolution to take effect.
On the next page, review your information, click the acknowledgment notice, and choose a principal to authorize the filing. Then, click “Dissolve Now” at the bottom to officially dissolve your LLC.
Online Paper Filing
Visit the business center’s page for submitting paper filings to get started.
Select “Close or reinstate your business” and click “Next” at the bottom of the page.
Click through the next few pages, and follow the same steps above to search for your business. Then, download, complete, and upload your Certificate of Dissolution PDF on this page.
Review your submission, and go through the payment process. Filing is free unless you want to pay $50 for expedited processing.
Once you submit, your filing will appear on your account dashboard under “My Filings.”
Physical Filing
To file by mail or in person, download and complete the Certificate of Dissolution PDF.
Additionally, you can print a $50 expedited service request and submit it alongside your filing.
If you’re delivering it, go to the following:
Business Services Division
Connecticut Secretary of the State
165 Capitol Ave Suite 1000
Hartford, CT 06106
If you’re mailing it, send it to:
Business Services Division
Connecticut Secretary of the State
PO Box 150470
Hartford, CT 06115-0470
In Closing
Regardless of the reason, LLC dissolution must be done right to avoid legal issues and financial penalties. Therefore, it’s highly recommended that you employ the services of an attorney to ensure everything is done correctly and all bases are covered.
FAQs
It’s free to file a Certificate of Dissolution in Connecticut.
Online filings will be processed immediately. Online paper filings will be processed in approximately three business days, and mail filings will be processed in about two weeks. For these two options, you can pay a $50 expediting fee for your dissolution to be processed within 24 hours.
If you’re not using your Connecticut LLC, you should close it to avoid any fees, filings, claims, or responsibilities your LLC might incur.
If you don’t dissolve your LLC, you’ll still be held accountable for fees, filings, or responsibilities, such as paying $80 to file your Annual Report. If you don’t maintain your LLC, it will be administratively dissolved.
Once you submit your Statement of Dissolution, your LLC can still operate in a limited capacity as you wind up operations, liquidize assets, and settle claims. When you’re done with housekeeping, your Connecticut LLC is officially terminated.
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