If your business is closing down permanently, it needs to be formally dissolved as an LLC. You can do this by filing a Certificate of Cancellation (Form LLC-4/7) with the California Secretary of State. The process will not be complete unless you can prove that the vote to dissolve was made by all members of your company.
During the dissolution process, you will need to make sure that any tax liabilities are paid and all assets have been distributed among the members. It is also important to ensure that you are fully prepared for any possible lawsuits that may arise. This includes making sure that all employees have been paid, any outstanding invoices are being paid, and that all taxes are up-to-date or will be filed in a timely manner.
You should also review your operating agreement to make sure that all of the necessary details are covered and that you have complied with all of the terms set out in the document. Lastly, you will need to notify the Franchise Tax Board of California that your company is being dissolved. This step is critical because it will help you avoid the accrual of additional minimum franchise taxes, fees, and reporting requirements.
Seeking the guidance of a knowledgeable California business lawyer can help you ensure compliance with all state regulations and laws. An attorney can also assist you in drafting and reviewing necessary documents, mediating disputes between members, and helping you navigate the complex legal process of dissolving your California LLC.