📝 What Is Company Dissolution?

Company dissolution is the legal process of closing down your U.S. business entity with both the state authorities and the IRS.
It ensures that your company is no longer active, and that you are no longer responsible for taxes, fees, or legal obligations tied to the entity.

Dissolving your LLC or Corporation properly means filing official paperwork and receiving confirmation that your business no longer exists in the government’s records.

🎯 Who Needs This Service?

• Non-U.S. residents who no longer need their U.S. LLC

• Entrepreneurs who stopped using their Stripe or Amazon accounts

• Companies with no activity, revenue, or future plans

• Business owners who want to avoid future taxes, penalties, or legal issues

• Anyone who formed a company “just in case” but never operated it

Why Is Proper Dissolution Important?

• ✅ Stops future IRS tax filing obligations

• ✅ Ends annual report and state renewal fees

• ✅ Protects your name and record from being marked non-compliant

• ✅ Prevents future penalties, fines, and interest

• ✅ Allows you to reform a new company later with a clean record

• ✅ Maintains your eligibility for future EINs, visas, or investments

If you do not dissolve properly, the U.S. government still considers your company active — even if you do nothing.

⚠ What Happens If You Ignore Company Closure?

1. IRS Penalties

• Even if your company earned $0, the IRS expects tax forms

• Failing to file = $25,000+ penalties for missing 5472/1120

• May trigger an IRS audit or blacklisting

2. State-Level Fines

• States like Delaware, California, and New York impose annual fees or franchise taxes (even on inactive companies)

• Failure to pay leads to automatic suspension + late fees

3. Registered Agent Problems

• If you don’t renew your registered agent, legal documents may bounce

• Your company can be marked “void,” “revoked,” or “administratively dissolved”

4. Stripe, PayPal, Amazon Risk

• If your company status is “Not in Good Standing,” platforms may freeze or close your accounts

• You may lose access to banking and payment processing

5. Long-Term Consequences

• Trouble forming a new company in the U.S.

• Inability to get a new EIN or open a bank account

• Legal exposure if someone tries to sue or tax a company still in your name

🧾 What Proper Dissolution Includes

• Filing Articles of Dissolution with the Secretary of State

• Submitting a final tax return to the IRS (with proper closure codes)

• Notifying the IRS that your EIN is no longer in use

• Cancelling your registered agent service

• Optionally informing Amazon, Stripe, and other platforms to cleanly close your accounts

🛠 Why INCHUB Clients Use This Service

• To avoid long-term government and tax problems

• To make sure the EIN is marked “inactive” and can be reused later

• To stop receiving IRS notices, state fines, or legal letters

• To move to a new structure or jurisdiction cleanly

• To exit a business that didn’t go as planned — without consequences

🕒 When Should You Dissolve?

• If you haven’t used your company for 6–12 months

• If you’re no longer planning to do business in the U.S.

• If your Stripe, bank, or Amazon accounts are closed

• If you’re moving to a new business structure

• Before the next IRS tax deadline or state renewal

💡 Expert Tip from INCHUB

“Ignoring your company doesn’t make it disappear. It becomes a silent liability with growing consequences. Close it properly — and you’ll never look back.”