LLC dissolution occurs upon the expiration of the duration of the limited liability company as provided in the articles of organization, upon the occurrence of an event specified in the articles or operating agreement (such as the sale of substantially all of its assets), or by resolution through a unanimous vote of the LLC members.

LLC Dissolution in Illinois

Officially ending an Illinois State-registered LLC entity puts it beyond the reach of creditors and other claimants. This official process is called LLC dissolution. To voluntarily dissolve an LLC, one must refer to the business’s operating agreement. It should contain a section with rules for how to dissolve the company. Typically the rules require a vote of the LLC members on a resolution to dissolve, and more specifically a requirement that some percentage of members vote in favor of the resolution.

After LLC dissolution is complete, the next step is the winding up of the business. Under Illinois’s LLC Act, key winding up tasks include: preserving the LLC’s business or property as a going concern for a reasonable time, prosecuting and defending lawsuits and other proceedings, settling disputes by mediation or arbitration, disposing of and transferring the LLC’s property, and distributing to the members any remaining LLC assets.