If you want to raise capital and be a syndicator, you have a fiduciary obligation to your investors to properly form, operate and dissolve the companies you create in connection with your offerings.
The proper way to terminate a company is to file the appropriate dissolution paperwork after its business is concluded. You should ask your Registered Agent for the dissolution requirements in your entity’s formation state. There may be a publication requirement notifying all potential creditors of deadlines for submitting final bills, and the Registered Agent can help with that. If creditors fail to submit invoices in the required timeframes, they could lose their rights to collect.
Your CPA should also file a final Form 1065 with the IRS and closing K-1 forms to all of the members.
If you don’t close an LLC, your state may continue to impose taxes, fees and late fees on the company. If you don’t terminate your existing contracts and leases, you’ll have to keep paying them, too. And someone can still file a lawsuit against the company, which would require that you reinstate it by paying all past-due state filing fees, late fees (which can be substantial) and Registered Agent Fees, before you could even hire an attorney to defend the lawsuit.
