Dissolution of a business in Utah is a formal, structured, and statutorily guided process. The state lays out steps to ensure the business is dissolved, and that the business affairs are wound up, properly. It is important for a business to follow the statutory regime carefully.
Is There a Filing Fee to Dissolve a Utah LLC?
There is not a fee to dissolve a Utah LLC, but you must pay a fee if you wish to expedite the service. It typically takes about 5-7 business days for the Utah Division of Corporations & Commercial Code to process a non-expedited dissolution. The Division will protect the business name for 120 days–during that time the name cannot be claimed by a new business owner.
The dissolution paperwork is filed with the Division. Once the paperwork is filed, the company may only engage in activities to wind up business affairs–it may not engage in its normal business. However, the company has 120 days after the dissolution to revoke its decision to dissolve if it decides to return to doing business.
Failure to file your annual report can lead to an involuntary business dissolution. At that point, you have two years to reinstate your company, which costs money and can result in a loss of liability protection. If the two years has lapsed, you can no longer reinstate your company and, if you desire to continue as a company, will need to form a new business entity. Our attorneys can help with that.
It is important to provide notice of dissolution to your creditors. If you do not provide adequate notice, you may become personally liable for business debts. However, if you provide proper notice and a creditor does not make a claim against the company in a timely manner, the company can proceed with the other steps of winding up the business with no further concern about that liability. Willow Creek Law can assist in providing proper notice to creditors. The IRS must be notified and receive appropriate tax filings. Contact our Sandy, UT office today to discuss dissolving your business.