The process of Legally Closing a LLC in Tennessee is called Dissolution.  After a Tennessee LLC has been Dissolved, it ceases to be Legally Active in the Tennessee Secretary of State's records and may no longer Legally conduct business in the state of Tennessee.

A Tennessee LLC is created when the TN Secretary of State approves the Formation Documents - the Articles of Organization.  A record of the Tennessee LLC is added to the list of LLCs which have officially registered with the Tennessee Secretary of State.  Once a LLC is registered with the Tennessee Secretary of State, that LLC immediately has both reporting and tax obligations which incur penalties if the obligations are not met by the required deadlines.

If you've registered a Tennessee LLC with the Tennessee Secretary of State and want to cease business activities you have to let the TN Secretary of State know that you intend to close your company.  Only after the TN Secretary of State has made sure that all of the obligations of the Tennessee LLC have been fulfilled will the Secretary of State approve of the closure of the company.

When the Tennessee Secretary of State approves the closing of a TN LLC, that Tennessee LLC is said to be Dissolved.  The process of Dissolving a Tennessee LLC is called Tennessee LLC Dissolution.

As soon as a Tennessee LLC is registered with the TN Secretary of State, that LLC is responsible for recurring obligations of the Tennessee Secretary of State and the Tennessee Department of Revenue.  If a Tennessee LLC does not file its required reports or pay its tax obligations, then that TN Limited Liability Company could be responsible for penalties which compound as time goes by.

Unless you Dissolve (Legally Close) your Tennessee LLC with the Tennessee Secretary of State that TN Limited Liability Company will be responsible for all recurring fees and penalties until the company has been legally closed.

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

There are things you need to do before you can request approval of LLC Dissolution from the Tennessee Secretary of State; and things that you have to do after the TN Secretary of State has approved Dissolution of the Tennessee LLC.

When a Tennessee LLC is originally created, the Members (owners) may create a document called an Operating Agreement.  The Operating Agreement may include pretty much anything that has to do with running the LLC, including specific requirements which need to be followed before the LLC may be Legally Closed.  Before you do anything else, you should review the Operating Agreement for anything that needs to be done before the Business is Legally Closed.
What you have to do both before and after the Tennessee LLC is Dissolved largely depends what kind of debts and liabilities that the Tennessee LLC has.  If the Tennessee LLC has not commenced business activities then the TN LLC Dissolution process is easier.

1. Hold a Members meeting and record a resolution to Legally Close the Tennessee LLC
   
   
   Tennessee 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 Tennessee LLC and a vote to Legally Close the Tennessee 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 Tennessee LLC does not have any Members then the Organizer(s) have to apply for Dissolution of the Tennessee LLC.
   
   
   We can transcribe and compile any minutes or approvals into a form that is legally recognized by the Tennessee Secretary of State.
   
   
2. File a Notice of Dissolution with the TN Secretary of State
   
   
   The Notice of Dissolution to Dissolve must be filed with the Tennessee Secretary of State before initiating the final stages of the Tennessee LLC Dissolution process.
   
   
   We can prepare your Notice of Dissolution and file it with the TN Secretary of State.
   
   
3. File all required Annual Reports with the Tennessee Secretary of State
   
   
   The Tennessee Secretary of State will not approve the Dissolution of a TN LLC until all required administrative reports have been filed.
   
   
   We can file any required Annual Reports with the TN Secretary of State quickly and easily.
   
   
4. File all required tax returns with the Tennessee Department of Revenue
   
   
   The Tennessee Secretary of State will not approve the Dissolution of any TN LLC until that LLC has fulfilled all its tax obligations with the Tennessee Department of Revenue.
   
   
5. Clear up any business debts
   
   
   All creditors of a Tennessee 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.
   
   
6. Pay all taxes and administrative fees owed by the Tennessee LLC
   
   
   The Tennessee Secretary of State will definitely not approve the Dissolution of a Tennessee LLC until all outstanding taxes and applicable registration and administrative fees have been paid.

1. Distribute all remaining assets of the Tennessee LLC
   
   
   If the Tennessee LLC has any remaining assets, these may be divided according to the Members' ownership interests in the TN 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.
   
   
2. Close all business bank accounts of the Tennessee LLC
   
   
   If there are any business bank accounts that have been opened for the Tennessee 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 Tennessee LLC which could lead to legal problems down the line.
   
   
3. Cancel all local business licenses and permits of the TN LLC
   
   
   If the Tennessee 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 Tennessee LLC may have.  This includes business registration licenses as well as reseller permits.
   
   
4. File IRS Form 966
   
   
   A dissolved Tennessee LLC may be required to file IRS Form 966 with the US Internal Revenue Service.  If a Tennessee 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 Tennessee LLC has been legally Dissolved so that it may take the appropriate actions.
   
   
   We can prepare IRS Form 966 for you to file.
   
   
5. Cancel the IRS account associated with the TN LLC's Federal Tax ID (EIN)
   
   
   A Federal Tax ID, or Federal Employer Identification Number (EIN), is like a Social Security Number for the Tennessee LLC.  Once the IRS links an EIN to a Tennessee LLC, that EIN stays with the Tennessee LLC even after the Company has been Legally Closed by the Tennessee Secretary of State.
   
   When the IRS processes the final tax return for the Tennessee 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 Tennessee LLC down the line then the IRS will reactivate the old EIN for your new Business.
   
   Before a Tennessee LLC can close an EIN account, it must be in Good Standing with the IRS.  The Tennessee LLC must have filed all required tax returns and paid any applicable fees and penalties due to the IRS.  The Tennessee LLC cannot close its EIN account until the IRS has received payment for any tax amounts the Company may owe.
   
   
   We can prepare the formal documents which you can sign and submit to the IRS in order to close the account associated with your EIN.
   
   
6. Keep Records of all Pertinent Business Documents
   
   
   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.

You notify the IRS that your Tennessee LLC has been Closed on the final tax return that is filed for your Business. 

If you have employees and file taxes quarterly with IRS Form 941, Employers Quarterly Tax Return, check the appropriate box on that form to let the IRS know that your LLC has Closed.  If you file yearly taxes do the same on IRS Form 944, Employers Yearly Tax Return. You should also attach a statement to the return showing the name of the person keeping the payroll records and the address where those records will be retained.

When you opened your Tennessee LLC you most likely were assigned a Federal Employer Identification Number (EIN).  Once the IRS links an EIN to a LLC, that EIN stays with the LLC even after the Company has been Dissolved.  If you don't plan to reopen your Tennessee LLC after it has been Closed, you should cancel the EIN account that has been assigned to your Company.

The time it takes to Dissolve a Tennessee LLC varies depending on how long it takes to complete the actions that are required in each specific case - holding meetings, closing accounts, distributing assets, etc.

The Tennessee Secretary of State requires a Tax Clearance Certificate from the TN Department of Revenue before it will approve the Dissolution of a Tennessee LLC.

The time it takes the TN Department of Revenue to process a request for a Tax Clearance Certificate depends on the tax status of the Tennessee LLC. In some cases it could take 5-6 weeks or more to get a Tax Clearance Certificate from the Tennessee Department of Revenue.

Once the initial actions are completed, the Tennessee Secretary of State usually takes around 3-5 business days to process the Articles of Temination.

Processing times for Tennessee LLC Dissolution filings vary depending on the work load of the Secretary of State's staff.  We've found that normal processing of Tennessee Dissolution filings takes the state around 3-5 business days.

We are dependent on, and have no control over, the staff and systems of the Tennessee Secretary of State or Tennessee Department of Revenue.  In our experience 3-5 business days is the time it usually takes the Tennessee Secretary of State to process a Tennessee Dissolution filing.  We get your Tennessee LLC Dissolution filing to the TN Secretary of State as soon as possible after we receive your order.  Once it is at the state we have no control over the Tennessee Dissolution approval process.

The total cost to Legally Close a Tennessee LLC varies depending on exactly what is required for each specific TN Dissolution.  We charge $249 plus any state fees for our Tennessee LLC Dissolution services. This includes:

We also offer these Tennessee LLC Dissolution services separately as explained below.

If there are Foreign Limited Liability Companies in states other than Tennessee that are tied to the Domestic Tennessee LLC then each of those Foreign LLCs must be Dissolved before the Tennessee LLC can be legally Dissolved.

A Tennessee Limited Liability Company may revoke Dissolution any time before the Tennessee LLC files Articles of Termination by filing Articles of Revocation of Termination with the Tennessee Secretary of State.

A Tennessee LLC company name becomes available for anyone to use when the Tennessee Limited Liability Company is Dissolved by the Tennessee Secretary of State. There are no LLC company name protections in Tennessee once a Tennessee LLC has been Dissolved by the TN Secretary of State.