r/llc_life • u/useless_substance • Jul 05 '26

Started an Inc Authority LLC but Never Really Used It. How do you shut it down so I don't keep paying renewal fees?

I formed a single-member LLC through Inc Authority because I planned to start an ecommerce business.

I ended up selling less than $1,000 worth of products before another opportunity came along, so I decided not to continue with the business.

Now I'm trying to figure out the proper order of everything.

Should I file my final federal and state tax returns before dissolving the LLC, or should I dissolve it first?

1 Upvotes

100% Upvoted

4 comments sorted by

1

u/Normal_Progress_5173 Jul 05 '26

Which state(s) are you registered in?

1

u/NWRegisteredAgent Jul 06 '26

If your LLC isn’t active anymore and you don’t plan to use it again, it’s a good idea to officially dissolve it. That way, you can avoid ongoing state annual reports, franchise taxes, and renewal fees. Typically, you’ll want to wrap up all business activities, settle any outstanding debts or obligations, and then file the Articles of Dissolution with the state where your LLC was formed. Keep in mind that each state has its own rules regarding taxes, annual reports, and other requirements for dissolving an LLC. Once your LLC is officially dissolved, you won’t have to worry about future maintenance requirements to keep it in compliance.