Dissolving a South Carolina LLC
If you and other members of your organization are considering dissolving your LLC, it's important to address the required steps; otherwise, you could face administrative consequences and additional challenges associated with the dissolution of your South Carolina LLC.
Before you file paperwork
Before anything is filed with the state to formally terminate the existence of the LLC, members of the LLC need to take certain actions. As a first step, members of the LLC need to approve the dissolution. This can be done in accordance with the operating agreement of the LLC or through a unanimous consent of the members approving the dissolution. Regardless of the method, the vote on the dissolution should be recorded in the minutes of the meeting in which it occurred. This can be helpful in the event that someone does not remember providing their consent.
What to file
You are responsible for taking the necessary actions to notify creditors prior to dissolving a South Carolina LLC and winding up the company. You will need to make arrangements to pay all LLC liabilities, debts and obligations.
South Carolina requires that articles of termination be filed with the Secretary of State, Division of Business Filings, by mail, UPS/FedEx or in person. This form is also available online, along with instructions. Duplicate copies must be submitted in black ink. There is a fee for filing and it is usually processed within 2 business days. This step is referred to as the formal process of dissolution. By filing dissolution articles, you are formally terminating the LLC’s status as a business entity registered directly with the state. South Carolina does not require tax clearance prior to dissolving your LLC.
We recognize that this process can be overwhelming and frustrating for someone in the midst of winding down the business of an LLC. To avoid the hassles associated, you can partner with our service and we will handle all aspects of dissolving your South Carolina LLC for you.
Impact of dissolution
Once formally dissolved with the state, the name of your South Carolina LLC is not protected. Other entities may be eligible to use the name 120 days after the dissolution effective date.
Finally, remember that if you are authorized to do business in other states, you will need to follow the necessary procedures within those states to decrease your chances of facing additional consequences outside of South Carolina. Swyft Filings can help with your withdrawal from any state where you are foreign qualified.