Business dissolution for LLC in Connecticut

Dissolving your LLC means that your company is no longer a legal entity with the state. This puts an end to your liability for annual fees, business taxes, annual reports and lawsuits.

To officially dissolve your LLC, you must follow certain steps.

Step 1: Follow the process in your Operating Agreement

Your Operating Agreement should outline what you need to do dissolve your LLC. Typical items include:

meeting with your LLC members to vote on the dissolution.
distributing your LLC assets
assigning a dissolution date
deciding on how to handle business debts
contacting creditors

Step 2: Check your business tax accounts

Pay all outstanding balances for:

your sales and use tax
employee withholding tax
unemployment insurance tax
any interest or fees due

Step 3: Close your tax and state accounts

Typically, closing your tax and state accounts requires sending a final return to the right agency (e.g. DRS).

However, you may have to file other paperwork for closing certain tax accounts.

You can also close your DRS tax and state accounts online at myconneCT [add KB article also]

Confirm with your CPA on the exact details for this process.

Step 4: Close your business tax withholdings

You will also need to close your business tax withholdings to officially stop paying employee wages. Generally, this involves filing the correct forms, issuing W2 forms to your workers and submitting copies to DRS.

Learn more about the process for ending your business tax withholdings. [add KB article]

You will also need to contact Connecticut's Department of Labor to cancel your employee registration.

Step 5: Close your unemployment tax account

To close your unemployment tax account, please visit Connecticut's Department of Labor. Or you may call them directly during their office hours at (860) 263-6000.

Step 6: Contact your LLC's bank

To close your business bank account, contact your bank for exact procedures. You will need to leave enough funds in your account during the dissolution process to pay off creditors and anything else you owe. If you do not do this, a creditor may try to obtain assets from your LLC members after these funds were distributed to them.