How to Dissolve a Single-Member LLC
Good news: dissolving a single-member LLC is simpler than a multi-member one: there's no vote to coordinate. But you still have to file with the state and close out taxes, or the fees keep coming.
What is different about dissolving a single-member LLC?
- No member vote needed: as the sole owner, you decide. Just record the decision in writing.
- Same state filing: you still file the Articles of Dissolution / Certificate of Cancellation for your state.
- Simpler taxes: a single-member LLC is usually a disregarded entity, so it's a final Schedule C on your personal return rather than a separate partnership return.
What is the full process, step by step?
- Vote to dissolveHold a member vote (or follow your operating agreement) and record the decision in writing. This is the legal trigger for winding up.
- Wind up the businessStop taking new business, finish existing obligations, collect receivables, and make a list of every asset and debt.
- Notify creditors & settle debtsTell known creditors, pay what you owe, and resolve claims. Do this before distributing anything to members, otherwise members can become personally exposed.
- File the state dissolution formFile your state's dissolution form with the Secretary of State. The exact name varies by state: Articles of Dissolution, Articles of Termination, or a Certificate of Cancellation (your state guide below shows the precise form, fee, and filing method). A few states (Texas, Pennsylvania, and others) require tax clearance before they'll accept this filing: check your state's notes first.
- Close federal & state taxesFile a final federal return (check the "final return" box), file final state returns, and handle final payroll/1099s. Cancel your EIN with the IRS by letter once done.
- Cancel licenses, permits & registrationsCancel business licenses, seller's permits, DBAs, and any foreign-state registrations so fees and filings stop accruing.
- Close accounts & keep recordsClose business bank accounts and credit lines after final payments clear. Keep dissolution records and final returns for at least several years.
Get your state's exact form and fee: pick your state, or run the free Dissolution Wizard. Never used the LLC at all? See how to close an LLC you never used.
Rather not file it yourself?
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Bizee
Bizee is a business filing service that can handle the dissolution filing in most states. Its order form does not take every state, so pick yours there first, and check what the order includes and the total price before you pay. The tax, license and bank steps on this page still apply, and Bizee says it is not a law firm and does not give legal advice.
See Bizee's dissolution service ↗Paid linkLegalZoom
LegalZoom sells three dissolution packages that prepare the paperwork and file it with your state. Prices on LegalZoom's page on Oct 28, 2026, each plus state filing fees:
- Standard Dissolution, $299: Your Articles of Dissolution prepared and filed with your state, filing instructions and specialists for questions; an expedited option at checkout.
- Business Dissolution Manager, $799: Hands-on management, outstanding annual reports and reinstatements where required, a Secretary of State status evaluation, and unlimited phone and e-mail access.
- Business Dissolution Manager + Rush Filing, $899: The Business Dissolution Manager with rush filing.
Check the total at checkout before you pay.
See LegalZoom's dissolution packages ↗Paid linkSingle-member LLC dissolution: FAQ
Is it easier to dissolve a single-member LLC?
Yes, there's no member vote to coordinate, so you can move straight to winding up and filing. But the state filing, final taxes, and account closures are the same, and skipping them still costs you.
Do I still need to file dissolution paperwork for a single-member LLC?
Yes. A single-member LLC is still a registered legal entity. Until you file the state's dissolution/cancellation form, it keeps owing fees and filings.
How are taxes handled when dissolving a single-member LLC?
A single-member LLC is usually a "disregarded entity" taxed on your personal return (Schedule C). File a final Schedule C, close any state tax accounts, and send the IRS a letter to close the business account tied to your EIN.
These answers are general information, not legal, tax, or financial advice. Rules and fees change and vary by state: confirm current requirements with the relevant government agency and, for your situation, a licensed professional.