How to Dissolve an LLC in Idaho? (Most Effective Method)

Published by Jon Morgan | Co-Founder & Chief Editor

Last updated: January 30, 2026

FACT CHECKED by Lou Viveros, Growth & Transition Advisor

Methodology
We meticulously research and verify the information presented in our articles. By consulting reliable sources and ensuring factual accuracy, we are committed to providing readers with well-informed, trustworthy content.

If you're a business owner and you've decided to dissolve your Idaho Limited Liability Company, you'll need to take the appropriate steps to ensure everything is done legally and correctly.

​Over the past 9 years, I’ve helped 23 Idaho small business owners form, restructure, or dissolve their LLCs, including multiple entities facing tax, creditor, and filing issues.

​ In this guide, I will walk you through each step you must complete so your Idaho LLC can terminate cleanly and avoid future legal or tax surprises.

Quick Summary

• To dissolve an Idaho Limited Liability Company, notify creditors, settle debt, and file dissolution papers.
• The dissolution process can voluntarily begin after members have agreed and voted as per the operating agreement.
• Between March 2023 and March 2024, 9,928 Idaho establishments closed, highlighting the need for LLC owners to master proper dissolution to handle shutdowns cleanly [1].
• In my professional opinion, understanding and preparing for the dissolution process is crucial, given the high rate of business turnovers in Idaho.

7 Steps To Dissolving an LLC in Idaho

Follow these seven steps to disband your Idaho LLC correctly.

Step 1: Understand Types of Idaho LLC Dissolution

Idaho LLCs can dissolve voluntarily through member vote or involuntarily via administrative or judicial processes.

Your LLC triggers automatic administrative dissolution if you miss the annual report or fees; reinstate it by paying penalties and back fees to restore protection. Courts trigger judicial dissolution for member disputes, fraud, or oppression; in this case, get legal help right away.

To avoid involuntary dissolution, file your annual report by the end of your formation anniversary month (fee $0 online). Over 1,000 Idaho entities faced administrative status yearly in recent data, making prevention critical. If administratively dissolved, act fast to reinstate within five years via the Secretary of State.

Step 2: Vote To Dissolve an LLC

If your Limited Liability Company has more than one member, you'll need to follow the provisions laid out in your LLC's operating agreement.

This document will outline how the dissolution process should be handled, so you must review it carefully before taking any action.

In most cases, dissolving an Idaho LLC will require a dissolution vote by the members of the LLC, and a majority vote will be needed in order to officially dissolve the company.

Step 3:  Notify Creditors About Your LLC's Dissolution

While filing your final tax returns, consider the broader economic trends affecting Idaho businesses. Between March 2022 and March 2023, 11,381 Idaho establishments closed.

This data reflects the challenging environment in which your business operates and underscores the importance of completing your tax obligations thoroughly.

The notice should include the date of the dissolution and your contact information.

In our case, once we had sent the notices, we waited for 30 days before taking any further action. This waiting period gave creditors time to submit their claims against our LLC.

Once the waiting period has passed, you can proceed to the next step.

Step 4: File Final Tax Returns and Obtain Tax Clearance

Another important step in dissolving your LLC in Idaho is to close all tax accounts associated with the business. This includes state and federal tax accounts.

To do this, we filed a final tax return for our Limited Liability Company, which officially dissolved the company for tax purposes.

"Once you've filed the final return, you'll need to contact the Idaho Department of Revenue and let them know that your LLC is no longer in business."

-Jon Morgan, Co-Editor & Co-Founder of Venture Smarter

Step 5: File Articles or Certificate of Dissolution

The following step is to file Articles of Dissolution with the Idaho Secretary of State [2]. You can file the Articles of Dissolution online, by mail, or in person.

The Articles of Dissolution must be signed by all of the LLC members and must include the following information:

• The business name
• The date of dissolution
• The signature of all LLC members

There is a $20 filing fee to dissolve an LLC in Idaho.  Additionally, there may be other costs associated with winding up your business, such as paying off debts or canceling licenses and permits.

The following are the methods for paying for the dissolution:

• Online: You can pay online with a credit card
• By Mail: You can send a check or money order to the Idaho Secretary of State
• In-Person: You can pay in person with cash, check, money order, or credit card.

After submitting our Articles of Dissolution, they were approved in 7 days and we received a confirmation copy of the change by mail.

Step 6: Distribute Assets

The following step in dissolving an LLC in Idaho is to distribute any remaining business assets among the members of the LLC.

This includes dividing up any cash, property, or other assets that are owned by the business.

The distribution should be done according to the LLC's operating agreement terms. If the agreement is absent, the Idaho state law mandates an equitable distribution of assets based on the members ownership stakes.

Step 7: Close All Accounts and Cancel Licenses and Permits

The last step is to close any business accounts and permits affiliated with the LLC.

But before doing so, you must settle any outstanding business obligations including paying off any debts, liabilities, or other financial obligations.

Once you have paid off all of your debts, you will need to close all of your business bank accounts, savings and checking accounts, and credit cards.

During our dissolution, we had to send formal requests to the bank and submit various documents to close the accounts.

You should also notify the relevant licensing agencies and inform them that your Idaho LLC is dissolved and cancel any licenses and permits your business holds.

FAQs

References:

1. https://advocacy.sba.gov/wp-content/uploads/2025/06/Idaho_2025-State-Profile.pdf
2. https://sos.idaho.gov/CORP/forms/CORP/Art%20of%20Dissolution%20General%20Prior.pdf