South Dakota LLC Dissolution is one part of a larger process commonly called the "Winding Up" process.

A meeting should be held of all Members of the South Dakota LLC and a vote to Legally Close the South Dakota Limited Liability Company taken.  There should be a majority of Members who vote Yes to Legally Close the company. A formal date on which the LLC will be closed should be specified.  Minutes of the meeting should be recorded and retained in the business records.  If the South Dakota LLC does not have any Members then the Organizer(s) have to apply for Dissolution of the South Dakota LLC.

The South Dakota Secretary of State will not approve the Dissolution of a SD LLC until all required administrative reports have been filed.

All creditors of a South Dakota LLC should be given notice of the pending LLC Dissolution. Each creditor should be given a mailing address to which they may submit claims as well as a deadline by which claims may be submitted.

The South Dakota Secretary of State will definitely not approve the Dissolution of a South Dakota LLC until all outstanding taxes and applicable registration and administrative fees have been paid.

If the South Dakota LLC has any remaining assets, these may be divided according to the Members' ownership interests in the SD Limited Liability Company.  Refer to the Articles of Organization for specific requirements, if any, for asset distribution.  All distributions to LLC Members must be reported to the IRS.

If there are any business bank accounts that have been opened for the South Dakota LLC then those accounts must be closed.  If any business bank accounts are left open then there may be liability and obligations of the Dissolved South Dakota LLC which could lead to legal problems down the line.

If the South Dakota LLC has obtained any state, regional, county or city business licenses or permits, there may be cancellation requirements associated with those licenses or permits.  Each of those must be cancelled to avoid any reporting or fiscal obligations the South Dakota LLC may have.  This includes business registration licenses as well as reseller permits.

A dissolved South Dakota LLC may be required to file IRS Form 966 with the US Internal Revenue Service.  If a South Dakota LLC is required to file IRS Form 966, that filing is required within 30 days after the final Dissolution plan is approved.  Filing IRS Form 966 lets the Federal Government know that the South Dakota LLC has been legally Dissolved so that it may take the appropriate actions.

A Federal Tax ID, or Federal Employer Identification Number (EIN), is like a Social Security Number for the South Dakota LLC.  Once the IRS links an EIN to a South Dakota LLC, that EIN stays with the South Dakota LLC even after the Company has been Legally Closed by the South Dakota Secretary of State.

When the IRS processes the final tax return for the South Dakota LLC, they automatically make the EIN inactive.  However, the account associated with the EIN is not automatically closed.  Closing the account associated with the EIN lessens the likelihood of any problems with the EIN account, or with the IRS, in the future.

If you should decide to revive the South Dakota LLC down the line then the IRS will reactivate the old EIN for your new Business.

Before a South Dakota LLC can close an EIN account, it must be in Good Standing with the IRS.  The South Dakota LLC must have filed all required tax returns and paid any applicable fees and penalties due to the IRS.  The South Dakota LLC cannot close its EIN account until the IRS has received payment for any tax amounts the Company may owe.

In order to avoid problems down the line, you should keep copies of all tax filings, contracts and employment records on file as well as Certified Copies of all company documents filed with the Secretary of State.  This includes your Formation Documents - your original Articles of Organization and any Amendments - and all Dissolution douments.