What are Articles of Dissolution?

Articles of Dissolution is a legal document that dissolves a legal business entity, such as a corporation or LLC. When you started your company, you likely filed paperwork like Articles of Incorporation (for a corporation) or Articles of Organization (for an LLC), which created a legal entity. Now, if you're ready to close it, you’ll need to file dissolution documents — also called Articles of Dissolution.

Businesses shut down for all kinds of reasons — retirement, changing paths, or tough financial times. Whatever the reason, if you want to dissolve a company properly, filing Articles of Dissolution ensures everything is official, and you can move on with peace of mind. Once your company is dissolved, it stops existing as a legal entity. This protects you from being responsible for new debts, taxes, or legal obligations tied to the business.

When do I need Articles of Dissolution?

You’ll need to file Articles of Dissolution when you’re ready to close your business permanently. Common reasons for company dissolution include:

• You’re ready to move on to something new.
• You’ve sold your business and no longer need the legal entity.
• Your business has gone through the Chapter 7 bankruptcy process and is no longer operating.

Keeping a dissolved company on the books — even if it’s no longer active — can cost you time and money. Many states still require annual reports and fees for inactive corporations or LLCs, and missing those could lead to penalties. By officially filing for dissolution, you can avoid that entirely, as well as future legal or tax headaches.

Keep in mind that once your company is dissolved, it no longer exists as a separate legal entity. This means you lose liability protection for any business-related activities going forward. For that reason, filing Articles of Dissolution should be one of the final steps when closing a company for good.

What to Do Before Filing Articles of Dissolution?

Filing Articles of Dissolution is one of the final steps when you're ready to officially dissolve a company. Once the paperwork is filed and accepted, your company is dissolved — meaning it no longer exists as a separate legal entity, and you lose liability protection for any business-related activities going forward.

Before that happens, there are a few important things to take care of:

1. Make the official decision

• Review your bylaws or operating agreement to follow the process for ending the business. This usually involves a formal vote.
• If no rules are in place, your state’s laws will likely set the procedure.

2. Notify creditors

• If the business owes money, you’ll need to notify creditors and give them a chance to file claims.

3. Wind down operations

• Wrap up contracts, notify customers, handle employee matters, and sell off inventory or equipment.

4. Pay taxes and debts

• Clear any outstanding bills, including taxes and other liabilities.

5. Distribute remaining assets

• After everything is paid, any leftover assets can be divided among the business owners.

6. File Articles of Dissolution

• Once everything above is done, it’s time to officially dissolve the business by filing the required forms with your state.

 

How do I file Articles of Dissolution?

When you're ready to officially close your business, filing the Articles of Dissolution is how you let the state know. Every U.S. state has a Secretary of State's office (or similar agency) that manages business filings — including both starting and ending a business.

The exact steps to file dissolution paperwork depend on your state. Most states now allow online filing, but others may still require paper forms submitted by mail or in person. Either way, check your state’s website for the most up-to-date process.

If you're unsure about how to move forward, you can also reach out to one of our Legal Pros for personalized guidance on properly dissolving your company.

How much does it cost to file dissolution paperwork?

The cost to dissolve a company can vary based on your state and your business’s situation. Here are some potential expenses to keep in mind:

• Filing fees: Typically range from $20 to $200, depending on the state.
• Unpaid taxes: All back taxes must be paid before the state will approve your company’s dissolution. In some jurisdictions, the state will administratively dissolve an entity even if taxes are unpaid—which leaves the owners still personally responsible for clearing those debts.
• Late fees or penalties: These apply if you’re behind on taxes or reports.
• Final reports: Some states require one last business report before allowing dissolution.
• Publication requirements: A few states require you to publish a notice of company dissolution in a local newspaper.
• Permit and license fees: You might have to cancel business licenses and pay related fees.

Now that you understand what Articles of Dissolution are and how to dissolve a company properly, you’re one step closer to wrapping things up the right way. Check out our Articles of Dissolution page for guidance and resources. You can also connect with a Rocket Legal Pro for personalized support and answers to any questions you might have.

 

Key takeaways Filing Articles of Dissolution is the official way to dissolve a company with your state. A dissolved company no longer exists as a legal entity, and its owners can’t be shielded from new liabilities going forward. The process to file may vary by state, but most allow e-filing. Fees to file dissolution documents usually range from $20 to $200, plus any unpaid taxes or penalties. Dissolution should only happen after you’ve completed all other steps in closing your business.

Additional resources

Learning how to enforce a contract is just one step. Explore these additional topics to learn more and take the next steps.

• How to Close a Business