If you are the business owner of an LLC in New Mexico that is no longer active or needed, you may be wondering how to dissolve it. This dissolution process can seem confusing and daunting, but it doesn't have to be.
This article will walk you through the steps necessary to dissolve your New Mexico LLC quickly and efficiently. Let's get started!
Step 1: Follow Your New Mexico LLC Operating Agreement
The first step in dissolving your New Mexico limited liability company is following the operating agreement you originally signed when forming the company.
This document will likely outline the procedures for dissolution and may even require unanimous consent from your LLC members before dissolving the LLC. If you are unsure where to find your operating agreement, you can typically request a copy from your registered agent.
Step 2: Close All Tax Accounts
Once you have followed the operating agreement and decided to dissolve your LLC, the next step in your New Mexico LLC dissolution is to close all tax accounts with the state. This includes unemployment insurance tax, employee withholding tax, and gross receipts tax.
You might also be required to submit a Business Tax Registration form and a tax clearance request from the New Mexico Taxation and Revenue Department. If you want to be certain that all of your New Mexico LLC's tax accounts are properly closed, you may need to seek professional legal or tax advice to deal with the process on your behalf. It's especially when you have no experience dealing with the Taxation and Revenue Department.
Step 3: File Articles of Dissolution
The next and final step after getting tax clearance and clearing the tax account is to file New Mexico LLC Articles of Dissolution with the New Mexico Secretary of State. This form can be found on the Secretary of State's website and must be completed in full before submitting it.
A filing fee of $25 associated with this form must be paid to have the Articles of Dissolution processed. Once the form is submitted and the fee is paid, your LLC will officially be dissolved, and you will no longer be responsible for its debts or liabilities.
After Dissolving Your LLC
Finally, once you dissolve a New Mexico LLC, all LLC assets will be liquidated and distributed to its members. If you have any questions about how this process works, you should consult with a professional before dissolving your LLC.
Once you have taken care of the final step, your New Mexico LLC will be officially dissolved, and you can move on to other business ventures.
Why Would Someone Dissolve a Company?
There are many reasons why someone might choose to dissolve their New Mexico LLCs. Perhaps the company is no longer profitable, or the members can no longer agree on how to operate it. Dissolution may also be necessary if the LLC has accumulated too much debt or is involved in legal troubles.
What Are the Effects of Dissolution?
Once your LLC is dissolved, it is no longer a legal entity. This means that it can no longer enter into contracts, own property, or conduct business in New Mexico. In addition, your LLC will no longer be required to file annual reports or pay annual fees to the state.
Dissolving an LLC in New Mexico: Conclusion
Dissolving an LLC in New Mexico is not a complicated process, but it is important to follow the correct steps correctly. If you have any questions or concerns, be sure to seek professional help before taking any action. Thanks for reading!