Are you considering selling or closing your Michigan business? It can be a complex process which requires careful planning. In this article, we will walk you through the steps you must take to ensure your business is legally dissolved, taxes are paid, debts are settled, and documents are properly filed for a smooth transition.

How to Close a Business in Michigan?

The process for closing a business in Michigan begins with establishing a business valuation and compiling a full account of all its debts. Once the debts are settled, you must identify the official documents required for dissolution and file a Certificate of Dissolution with the Michigan Department of Licensing and Regulatory Affairs (“LARA”). Additionally, you must request a Tax Clearance Certificate to verify that all taxes have been paid. The Tax Clearance Certificate must be requested from the Michigan Department of Treasury within 60 days of filing the dissolution. It is important to note that if an LLC is currently not in good standing, the certificate will not be issued.

Steps to Close a Business in Michigan

The following steps will help you close your business in Michigan:

  • Step 1: Establish a valuation of your Michigan business
  • Step 2: Compile a full account of your Michigan business’s debts
  • Step 3: Identify Michigan’s official documents required for dissolution
  • Step 4: Prepare and file Certificate of Dissolution with the Michigan Secretary of State
  • Step 5: Prepare US IRS Form 966 for you to sign and file
  • Step 6: Prepare documents to cancel licenses

After all of these steps have been completed, you will have successfully closed your business in Michigan.

Conclusion

Closing a business in Michigan can be a complex process, but with careful planning and following the steps outlined above, you can ensure that your business is properly dissolved and all taxes and debts are paid. If you have any questions about the process, or need help finding a business broker, the team at AtlantaBusinesses.com is here to help. Check out their website at atlantabusinesses.com for all your questions about selling a business and business brokers.

What is the expense of closing a LLC in Michigan?

The cost to dissolve an LLC in Michigan is $10. Upon submitting the Articles of Dissolution, the Department of Licensing and Regulatory Affairs, Corporations Division will provide a Certificate of Dissolution that states your LLC is officially dissolved.

What is the process for terminating my Michigan sales and use tax account?

You must submit a written request to cancel your account within 15 days of ending the service. Form 4460, IFTA Request for Cancellation of Account, can be found on our website.

What is the process for dissolving an LLC in Michigan?

A limited liability company can be disbanded and its activities wrapped up when any of the following happens: All members who are eligible to vote agree to do so, or when the time specified in the organization’s articles has passed.

What is the process for terminating a DBA in Michigan?

Conduct a Board of Directors meeting and document a resolution to End the Michigan Corporation. Afterwards, have a Shareholders meeting to ratify the Dissolution of the Michigan Corporation. Additionally, submit all required Yearly Reports to the Michigan Secretary of State and all obligatory tax returns to the Michigan Department of Treasury.