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

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

When the Utah Department of Commerce approves the closing of a UT LLC, that Utah LLC is said to be Dissolved.  The process of Dissolving a Utah LLC is called Utah LLC Dissolution.

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

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

Utah 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 Utah Department of Commerce; and things that you have to do after the UT Department of Commerce has approved Dissolution of the Utah LLC.

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

1. Hold a Members meeting and record a resolution to Legally Close the Utah LLC
2. File all required Annual Reports with the Utah Department of Commerce
3. Clear up any business debts
4. Pay all taxes and administrative fees owed by the Utah LLC

1. Hold a Members meeting and record a resolution to Legally Close the Utah LLC
   
   Utah 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 Utah LLC and a vote to Legally Close the Utah 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 Utah LLC does not have any Members then the Organizer(s) have to apply for Dissolution of the Utah LLC.
   
   
   We can transcribe and compile any minutes or approvals into a form that is legally recognized by the Utah Department of Commerce.
   
   
2. File all required Annual Reports with the Utah Department of Commerce
   
   The Utah Department of Commerce will not approve the Dissolution of a UT LLC until all required administrative reports have been filed.
   
   
   We can file any required Annual Reports with the UT Department of Commerce quickly and easily.
   
   
3. Clear up any business debts
   
   All creditors of a Utah 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.
   
   
4. Pay all taxes and administrative fees owed by the Utah LLC
   
   The Utah Department of Commerce will definitely not approve the Dissolution of a Utah LLC until all outstanding taxes and applicable registration and administrative fees have been paid.

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

1. Distribute all remaining assets of the Utah LLC
   
   If the Utah LLC has any remaining assets, these may be divided according to the Members' ownership interests in the UT 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 Utah LLC
   
   If there are any business bank accounts that have been opened for the Utah 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 Utah LLC which could lead to legal problems down the line.
   
   
3. Cancel all local business licenses and permits of the UT LLC
   
   If the Utah 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 Utah LLC may have.  This includes business registration licenses as well as reseller permits.
   
   
4. File IRS Form 966
   
   A dissolved Utah LLC may be required to file IRS Form 966 with the US Internal Revenue Service.  If a Utah 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 Utah 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 UT LLC's Federal Tax ID (EIN)
   
   A Federal Tax ID, or Federal Employer Identification Number (EIN), is like a Social Security Number for the Utah LLC.  Once the IRS links an EIN to a Utah LLC, that EIN stays with the Utah LLC even after the Company has been Legally Closed by the Utah Department of Commerce.
   
   When the IRS processes the final tax return for the Utah 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 Utah LLC down the line then the IRS will reactivate the old EIN for your new Business.
   
   Before a Utah LLC can close an EIN account, it must be in Good Standing with the IRS.  The Utah LLC must have filed all required tax returns and paid any applicable fees and penalties due to the IRS.  The Utah 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 Utah 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 Utah 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 Utah 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 Utah 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 Utah Department of Commerce usually takes around 5-7 business days to process the Articles of Dissolution.

Processing times for Utah LLC Dissolution filings vary depending on the work load of the Department of Commerce's staff.  We've found that normal processing of Utah Dissolution filings takes the state around 5-7 business days.

We are dependent on, and have no control over, the staff and systems of the Utah Department of Commerce .  In our experience 5-7 business days is the time it usually takes the Utah Department of Commerce to process a Utah Dissolution filing.  We get your Utah LLC Dissolution filing to the UT Department of Commerce as soon as possible after we receive your order.  Once it is at the state we have no control over the Utah Dissolution approval process.

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

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

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

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

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

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

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