No matter how your business is classified, there may come a time when you need to shut down your operations and move on. If you run a multi-member limited liability company (LLC), the process is more involved than dissolution for entities with sole proprietorship. While a business lawyer will help you close the organization legally, use the guide below to understand what to expect.

How to Dissolve a Multi-Member LLC

1. Get Consent

First, gather the documents created when you originally registered, such as the operating agreement and articles of organization. These contain specific guidelines to follow for dissolution, such as getting the majority vote among the company’s partners.

In North Carolina, LLCs may also dissolve if every member offers a written statement of consent. Keep copies of the statements or record video footage of the vote to back up your decision.

2. Produce Articles of Dissolution

Next, work with your business lawyer to file a set of documents called the “articles of dissolution.”

The paperwork contains the name of your company, details about the business’s start date, your reason for dissolution, and the date of dissolution. Then, submit the documents to the North Carolina Secretary of State with the required filing fee.

3. Take Care of Assets & Liabilities

Before you can be on your way, you must figure out how to fairly divide the business’s assets and pay any outstanding debts.

Under North Carolina law, one or more members should be tasked with collecting the assets, distributing profits to members, disposing of leftover property, and paying off creditors. Once liabilities are paid in the proper order, notify your creditors of the dissolution.

Dissolving a company can be a complicated process, so turn to The Law Office of W. Randall Holcomb, PLLC. Based in Greensboro, NC, this business lawyer will walk you through all of the necessary steps so you can avoid pitfalls and satisfy your partners and creditors. They have a client-focused approach and get to know each client personally. Learn more about their work with business law online, or call (336) 888-8760 to schedule a consultation.