We recently started an LLC for our club, so as we could raise funds legally.
turns out it is costing us more money and time to have the LLC and now want to close down the LLC and just go back to running our little club. It has only exisited for 60 days if that, it is a two member LLC too.
But it seems as a small club, there is alot of paper work and tax prep. fees and we do not even have that kind of money. So how do we legally end the LLC and do we need to file federal tax papers for 2008 if it only existed for only 60 days and we have not made $1.00?
If you lost money, then absolutely you want to report your losses to the government because you get to take a deduction and at least recover some of those losses in tax savings.
To end the LLC, you’ll need to dissolve it. There are several steps to dissolving an LLC:
- Have all the members of the LLC agree to the dissolution.
- If you cannot get unanimous agreement to dissolve the LLC, then you must resort to the operating agreement’s provisions regarding how big a majority of members you need to agree to the dissolution.
- The members agree to dissolution in writing.
- Pay all creditors of the LLC what they are owed.
- File formal articles of dissolution with the state.
You can probably find the right forms searching the New Jersey secretary of state pages and fill them out yourself.
New Jersey charges $100 in state fees to file an LLC dissolution (remember to report this as an expense so you can deduct it, along with all your other business expenses).