LLC Dissolution

[Sakthi]

We are planning to close a LLC as of 12-31-14. This LLC has been filing as a partnership for Federal purposes. Apart from the forms to be filed to the State for dissolution, are there any form(s) required to be filed to the IRS, like Form 966 one files for corporate dissolution or liquidation? We will file the 2014 tax return - Form 1065 - with the "Final Return" box marked. Thanks.

[DaveinTexas]

No additional forms to file

other than the Final K1s, of course. However, I would strongly recommend telling the client that although this will end the entity's tax obligations, there may be other obligations such as a Franchise/State Annual Report. Also, your client should consider consulting with an Attorney to ensure the dissolution is done correctly with the State. They don't want any loose ends (possible outstanding creditor/third party claims) when dissolving an entity.

Also, be sure to read up on Section 708 (a little light reading) And be aware of the consequences of a negative capital account upon termination of the partnership.

You may already know these things, just putting in my wooden nickel's worth of advice.

[Sakthi]

LLC dissolution

We are planning to close a LLC as of 12-31-14. This LLC has been filing as a partnership for Federal purposes. Apart from the forms to be filed to the State for dissolution, are there any form(s) required to be filed to the IRS, like Form 966 one files for corporate dissolution or liquidation? We will file the 2014 tax return - Form 1065 - with the "Final Return" box marked. Thanks.

Thank you very much for the information. I really appreciate it.