Summary of closing steps.
1. Distribute all remaining assets of the South Dakota LLC
If the South Dakota LLC has any remaining assets, these may be divided according to the Members' ownership interests in the SD Limited Liability Company. All distributions to LLC Members must be reported to the IRS.
2. Close all business bank accounts of the South Dakota LLC
If there are any business accounts that have been opened for the South Dakota LLC then those accounts must be closed. If Company Business accounts are left open there may be liability and obligations of the Dissolved South Dakota LLC which could lead to legal problems down the line.
3. Cancel all local business licenses and permits of the SD LLC
If the South Dakota LLC has obtained any state, regional, county or city business licenses or permits, each of those must be cancelled to avoid any reporting or fiscal obligations of the South Dakota LLC. This includes business registration licenses as well as reseller permits.
4. File IRS Form 966
Most Dissolved South Dakota LLCs must file IRS Form 966 with the US Internal Revenue Service. If a South Dakota LLC is required to file IRS Form 966, the filing is required within 30 days after the final Dissolution plan is approved. Filing IRS Form 966 lets the Federal Government know that the South Dakota LLC has been legally Dissolved so that it may take the appropriate actions.
- We can prepare IRS Form 966 for you to file.
5. Cancel the IRS account associated with the SD LLC's Federal Tax ID (EIN)
A Federal Tax ID, or Federal Employer Identification Number (EIN), is like the Social Security Number for the South Dakota LLC. Once the IRS links an EIN to a South Dakota LLC, that EIN stays with the South Dakota LLC even after the Company has been Dissolved by the South Dakota Secretary of State.
When the IRS processes the final tax return for the South Dakota LLC, they automatically make the EIN inactive. However, the account associated with the EIN is not automatically closed. Closing the account associated with the EIN lessens the likelihood of any problems with the EIN account, or with the IRS, in the future.