Whether you have owned and operated your South Carolina LLC for years or just formed it yesterday; if you want dissolve your LLC’s charter with the state of South Carolina you have some options to consider.
I will attempt to give you an overview of all your choices so that you can make the best decision when it comes to determine how to end the existence of your South Carolina LLC.
When dissolving (in South Carolina it’s called “termination”) an LLC, you are literally putting an end to its existence. Remember your LLC is considered by law to be a legal person, so likewise you must plan what to do next: luckily a funeral is not required in this case.
Just as a new LLC is created by filing articles of organization, dissolving/terminating a South Carolina Limited Liability Company requires the filing of articles of termination. But I’m getting ahead of myself, first you must decide if you want to voluntarily or involuntarily terminate your LLC.
This is a simple way of saying “formal termination”. In other words, you are pro-actively deciding to terminate your LLC now rather than waiting for the state to do this involuntarily. To do this, you must file articles of termination with the Secretary of State of South Carolina, the same agency that formed your LLC. You can find this form here.
The state charges $10 for the filing and it is completed within a couple of weeks.
Want help with your SC Termination?
Let SmallBiZ Filings make this simple. For $25 we’ll prepare your documents,
you’ll simply review, sign, attach a check for $10, and send to the state.
CLICK HERE (Choose Other Filing – Dissolution” from the list of services)
If your South Carolina limited liability company does not follow through and file its annual report (see here for your LLC’s annual filing requirements), the state will eventually involuntarily terminate the charter. This method has also been referred to as “abandonment”, since you would be abandoning the charter and letting the state terminate on its own terms.
If the LLC did not conduct any business (no income, expenses, etc.) this may be a viable option. However, if there are assets and income/expense activity, it may be better to formally terminate the LLC.
Regardless of whether you go the voluntary or involuntary route, I would recommend that you consult your tax advisor. Last thing you want to do after you berried your LLC, is to have it come back to life or find some other skeleton in the LLC’s closet that wasn’t dealt with after the LLC was terminated.
Once your charter has been terminated, you are not done. You must still notify others who are connected to your SC LLC. See the “How to dissolve your LLC” article below for these details.
CEO & Founder of SmallBiZ.com, created over seventeen years ago to help small business owners simplify the process of starting & managing their small businesses. SmallBiZ.com now serves over 10,000 businesses per year with various filing and subscription services; in addition to the 1000's of daily visitors to www.smallbiz.com, accessing free services, help pages, & educational videos & webinars.