• Marie-Yves Nadine Jean-Baptiste

How do I terminate my LLC?

Updated: Jul 20, 2021

To terminate an LLC, the member(s) must first dissolve and wind up any remaining business affairs.

Proper voluntary dissolution occurs:

  1. At a time or the completion of a specified event stated in the LLC’s Operating Agreement;

  2. There is unanimous consent amongst members to end the LLC;

  3. When a court order to dissolve has been issued; or

  4. When the LLC has been without members for 90 consecutive days.

Once dissolution has occurred the winding up process begins. During the winding up period, members are to complete any unfinished business they may have. This includes satisfying obligations with business partners, paying unsettled debts, notifying creditors and lenders, and appropriately distributing the company’s assets to members – if any. Upon wind up, the LLC must file an article of cancellation with the Maryland State Department of Assessment and Taxation.  Once the State Department of Assessment and Taxation receives and accepts the articles of cancellation and the filing fee, the LLC will be considered terminated immediately or on a future date specified by the articles of cancellation.

If you are thinking about dissolving your LLC, and would like to speak to an experienced attorney, schedule a consultation with our office and let's get started.

Sources: MD Code, Corporations and Associations, §§ 4A-901 – 4A-907


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