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

A South Carolina LLC is created when the SC Secretary of State approves the Formation Documents - the Articles of Organization.  A record of the South Carolina LLC is added to the list of LLCs which have officially registered with the South Carolina Secretary of State.  Once a LLC is registered with the South Carolina 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 South Carolina LLC with the South Carolina Secretary of State and want to cease business activities you have to let the SC Secretary of State know that you intend to close your company.  Only after the SC Secretary of State has made sure that all of the obligations of the South Carolina LLC have been fulfilled will the Secretary of State approve of the closure of the company.

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

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

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

South Carolina 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 South Carolina Secretary of State; and things that you have to do after the SC Secretary of State has approved Dissolution of the South Carolina LLC.

When a South Carolina 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 South Carolina LLC is Dissolved largely depends what kind of debts and liabilities that the South Carolina LLC has.  If the South Carolina LLC has not commenced business activities then the SC LLC Dissolution process is easier.

1. Hold a Members meeting and record a resolution to Legally Close the South Carolina LLC
2. Clear up any business debts
3. Pay all taxes and administrative fees owed by the South Carolina LLC

1. Hold a Members meeting and record a resolution to Legally Close the South Carolina LLC
   
   South Carolina 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 Carolina LLC and a vote to Legally Close the South Carolina 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 Carolina LLC does not have any Members then the Organizer(s) have to apply for Dissolution of the South Carolina LLC.
   
   
   We can transcribe and compile any minutes or approvals into a form that is legally recognized by the South Carolina Secretary of State.
   
   
2. Clear up any business debts
   
   All creditors of a South Carolina 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.
   
   
3. Pay all taxes and administrative fees owed by the South Carolina LLC
   
   The South Carolina Secretary of State will definitely not approve the Dissolution of a South Carolina LLC until all outstanding taxes and applicable registration and administrative fees have been paid.

1. Distribute all remaining assets of the South Carolina LLC
2. Close all business bank accounts of the South Carolina LLC
3. Cancel all local business licenses and permits
4. File Form 966 with the IRS
5. Cancel the IRS account associated with the SC LLC's Federal Tax ID (EIN)
6. Keep Records of all Pertinent Business Documents

1. Distribute all remaining assets of the South Carolina LLC
   
   If the South Carolina LLC has any remaining assets, these may be divided according to the Members' ownership interests in the SC 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 South Carolina LLC
   
   If there are any business bank accounts that have been opened for the South Carolina 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 Carolina LLC which could lead to legal problems down the line.
   
   
3. Cancel all local business licenses and permits of the SC LLC
   
   If the South Carolina 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 Carolina LLC may have.  This includes business registration licenses as well as reseller permits.
   
   
4. File IRS Form 966
   
   A dissolved South Carolina LLC may be required to file IRS Form 966 with the US Internal Revenue Service.  If a South Carolina 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 Carolina 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 SC LLC's Federal Tax ID (EIN)
   
   A Federal Tax ID, or Federal Employer Identification Number (EIN), is like a Social Security Number for the South Carolina LLC.  Once the IRS links an EIN to a South Carolina LLC, that EIN stays with the South Carolina LLC even after the Company has been Legally Closed by the South Carolina Secretary of State.
   
   When the IRS processes the final tax return for the South Carolina 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 Carolina LLC down the line then the IRS will reactivate the old EIN for your new Business.
   
   Before a South Carolina LLC can close an EIN account, it must be in Good Standing with the IRS.  The South Carolina LLC must have filed all required tax returns and paid any applicable fees and penalties due to the IRS.  The South Carolina 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 South Carolina 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 South Carolina 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 South Carolina 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 South Carolina 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.

Once the initial actions are completed, the South Carolina Secretary of State usually takes around 7-10 business days to process the Articles of Termination.

Processing times for South Carolina LLC Dissolution filings vary depending on the work load of the Secretary of State's staff.  We've found that normal processing of South Carolina Dissolution filings takes the state around 7-10 business days.

We are dependent on, and have no control over, the staff and systems of the South Carolina Secretary of State .  In our experience 7-10 business days is the time it usually takes the South Carolina Secretary of State to process a South Carolina Dissolution filing.  We get your South Carolina LLC Dissolution filing to the SC Secretary of State as soon as possible after we receive your order.  Once it is at the state we have no control over the South Carolina Dissolution approval process.

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

• Same day processing
• Transcribe minutes of Members meeting which approves Closing the Company
• Prepare and file the Articles of Termination with the South Carolina Secretary of State
• Prepare US IRS Form 966 for you to sign and file
• Prepare documents to cancel Federal EIN account
• Certified copy of Dissolution filing from SC Secretary of State
• Priority Mail Delivery of all documents
• Unlimited Customer Support

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

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

The company name of a Dissolved SC Limited Liability Company may not be used by another South Carolina Corporation or LLC within 120 days of the date on which the South Carolina Secretary of State approved the Dissolution of the SC LLC. After 120 days the company name becomes available to any South Carolina Corporation or LLC. There are no protections on the use of a South Carolina company name after 120 days from the date of Dissolution.

There are no state of South Carolina requirements for the publication of a Notice of Dissolution of a South Carolina LLC.

While the South Carolina Secretary of State does not legally require the publication of a Notice of Dissolution of a South Carolina LLC, publication is a good way to notify anyone who might have a claim against the South Carolina LLC.  Evidence of publication might prove useful down the line if someone makes a claim against the SC Limited Liability Company after the South Carolina LLC has been dissolved.