What do we do when we want to dissolve a company in Iowa? There are several factors to consider as follows:
- What type of business entity is being dissolved?
- Are there any remaining assets in the business, and will there need to be a liquidation?
- Are there any outstanding debts?
- Are the business owners all in agreement about dissolving the company?
We cover how to dissolve a business in Iowa the correct way by providing you with the appropriate forms, information about the dissolution process, and what to do if you change your mind and need to undo a dissolution of your company.
How to Dissolve an LLC in Iowa
How much does it cost to dissolve an LLC in Iowa? Well, the dissolution process in Iowa is unique to most other states, instead of filing for articles of dissolution to the Secretary of State via an online or paper form you will need to write out a statement of dissolution and send it directly to the Secretary of State, Business Services Division.
The statement of dissolution that you will write out and send only needs to include the name of your business and that it is now dissolved. Once you have completed this step, it is required for you to then submit a statement of termination, which includes the name of your business, and a declaration that your business is terminated.
So, once you have written your statement of dissolution, you must also write a check for $5.00 (no other forms of payment are accepted), made payable to the “Secretary of State”, and it will usually take between 2-3 business days for the process to be complete. You can also file both articles or dissolution or termination by person as well, which will mean that the process can be done within that day, at the Secretary of State, Business Services Division office. The statement and check must be mailed to this address:
Secretary of State
Business Services Division
Lucas Building, 1st Floor
Des Moines, Iowa 50319
Once your dissolution process has been finalized and everything is up together, you can now start the process for the statement of termination, which is the exact same process as with dissolving your company. Requiring the same payment of $5.00, and it must be sent to the Secretary of State’s office.
Dissolving an LLC in Iowa is required by law, and the process to dissolve a business in Iowa is certainly no walk in the park. You will need to complete multiple steps before entering a proper Iowa LLC dissolution. To eliminate potential liability, lawsuits, and additional fees, you should consider using the services of a Business Filing Services Company that can affordably dissolve your Iowa LLC for you.
How to Dissolve a Corporation in Iowa
A corporate dissolution (for a C-Corporation or S-Corporation) in Iowa can be done whether a company has issued shares or has not yet issued shares.
- If a company has issued shares, the Articles of Dissolution must be approved via a shareholder meeting.
- If the company has not yet issued shares, the dissolution must be approved by a majority of the business owners or the Board of Directors of the company.
In order to successfully dissolve your Iowa corporation, you must follow the same process as dissolving an LLC in Iowa. Filing for articles of dissolution with the Secretary of State will not require a specific form to be filled out, you simply must write out a document containing the name of your company, the date on which the dissolution was authorized, and whether the dissolution was approved by the shareholders.
Once the document has been sent with the correct filing fee of $5.00 (same as with LLC dissolutions), you can now look into the termination of your company, by following the same process as you have done for the dissolution, and identical to terminating an LLC in Iowa. Alternatively, you can also complete the dissolution and termination processes in person by visiting the Secretary of State, Business Services Division offices and filing for dissolution there.
Here is the address to send your dissolution documents:
Secretary of State
Business Services Division
Lucas Building, 1st Floor
Des Moines, Iowa 50319
To dissolve a Corporation in Iowa, there are multiple requirements and non-compliance that can lead to serious legal consequences. To dissolve your Iowa Corporation the right way, you should consider using the services of a Business Filing Services Company that can do this for you at an affordable, flat fee.
How do I Dissolve a Partnership or Sole Proprietorship in Iowa?
The methods for discontinuing businesses in Iowa really do depend on how the business has been legally organized and the structure of the company itself. So, for a Sole Proprietorship in Iowa, you are not required to file a form or pay any filing fees.
The process is straightforward, you must pay off any outstanding debts that your business may have acquired, there is no dissolution paperwork to fill out, once the debts have been paid, you simply need to terminate accounts and move on.
For a Partnership in Iowa, you must follow the same process for LLCs and Corporations, no form is required to be filled out, and instead, you must add information to a document and send it to the Secretary of State, Business Service Divisions. Or, alternatively, file in person by visiting the Secretary of State office. The fee is $5.00.
Common Filing Requirements & Actions for Dissolving LLCs and Corporations
To officially end the existence of an Iowa business, it is important that financial debts get settled, bank accounts are closed, outstanding tax obligations (such as sales taxes, business taxes, and state taxes) are paid, and all payroll obligations are fulfilled.
Companies going through a voluntary dissolution must be in good standing with the Secretary of the State for the state of Iowa and need to adhere to all state laws surrounding the dissolution process, which, in Iowa’s case, are pretty straightforward.
Once an Iowa company has been dissolved, and its Articles of Incorporation or Articles of Organization are no longer valid, you should make the Internal Revenue Service aware that the Iowa business has been dissolved.
This notification to the IRS should be in the form of a letter that includes the Business Name, its Federal Tax ID Number (EIN or FEIN), the business address, and the reason for the dissolution.
The Iowa company will need to file a final tax return after you have filed for dissolution (both a federal tax return and state tax return) with the IRS and the Iowa Finance Department.
Why Do I Need to Dissolve My Iowa Company?
If you are going to be ending your business, you may wonder why go forward with paying the filing fees and submitting paperwork to dissolve the company? Doesn’t the business just stop once you decide to stop?
Not necessarily – failing to dissolve a company properly can lead to penalties, potential lawsuits, and other fees until the company is formally dissolved with the Iowa Secretary of State. It is more cost-effective to pay to dissolve your Iowa company the correct and legal way than it is to face penalties, unknown taxes, and late fees.
The simplest, and most efficient way to dissolve a business in Iowa is to utilize the services of a professional Business Filing Services Company that will do it all for you. This will eliminate unnecessary administrative costs and potential liability and will ensure it is done correctly and according to Iowa law.
