How to Terminate a California LLC by New BizFile System or Mail | how to close your CA LLC

Do you want to terminate your California Limited Liability Company (LLC)? In this video I share how to cancel or close your LLC, including how to get access to your file, confirm your LLC is eligible to be shut down, and how to do the filing via BizFile or PDF/mail.
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Legal Disclosure: Elizabeth is licensed to practice in the state of California and before the United States Patent and Trademark Office. Information contained in this video is not legal advice - please seek advice of counsel. This video and description may contain attorney advertising.
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#llc

[@ElizabethPW]

Here's the link to the BizFile system: bizfileonline.sos.ca.gov/ and here's the link to the PDFs www.sos.ca.gov/business-programs/business-entities/forms/limited-liability-companies-california-domestic

[@KENTURNERSINGS]

I paid a law firm to create my LLC 10/2022. Now that I’ve decided to terminate, am I legally entitled to a refund ?

[@iamltmoney]

Thank You.... You're awesome 🙂

[@jjjohnson3342]

I started this process the other day and immediately got confused by the election to terminate form versus the termination form and really appreciate how clearly you went through the different options. Thank you for making this so much easier! I would have procrastinated for so much longer if I hadn't found your video.

[@ElizabethPW]

Welcome!!

[@whitestone2469]

Your videos have helped me reach over $300,000 in trading by age 24! Thanks Elizabeth Potts. Keep the videos coming. 👍🏽

[@andrewblack4432]

Congrats and wishing you the best .

[@favourazah1504]

I'm convinced that the big investors and analysts are trying to scare us to keep us poor and ignorant to the market.. because its steady doing good after all the jobless and market crash talks .

[@jamesjude4988]

Keep up the great work

[@whitestone2469]

@kim sun When I was 21 ,but you need a finance Pro if you don’t want to loose and if you want to be more successful

[@whitestone2469]

@kim sun follow⬇⬇

[@user-bf7dd7jk8n]

Oh my gosh! THANK YOU SOOO MUCH! I couldn't have done it without you. You are a true Godsend for making these videos!!❤❤❤

[@ElizabethPW]

Welcome!

[@KidNavi]

You're amazing, just filed an LLC for my music but realized creating a sole proprietorship is the way to go for me since I still get all the tax benefits. Later down the line I will create an LLC and will most likely come back to your videos haha thank you so much!

[@ElizabethPW]

You're welcome!

[@valeriah6830]

This was SO helpful!! I used the short form and got it done in the same sitting as I watched. I loved that your video was recent. THANK YOU SO MUCH!!

[@ElizabethPW]

Great! Glad that you got that done

[@sofoo539]

Same, thank you so much Elizabeth!!

[@jasono2669]

Can one members to sign for all voters ?

[@coachshar7223]

Thank you so much! Your video was the ONLY one that actually walked me thru exactly what I needed to get done! VERY HELPFUL!

[@ElizabethPW]

Glad it helped! :)

[@annakorovina2887]

Thank you so much. The website haven't changed anything up to date, so still same names everywhere.

[@stagoz]

Thanks so much Elizabeth! Your tutorial is clear and thorough. This was just what I needed to terminate an LLC that I started but had never launched.

[@ElizabethPW]

Glad it was helpful!

[@k.s.3421]

Thank you for this! I have literally wasted 2 days searching this site because I didn’t associate the “file amendment” button with terminate…. and I have a college degree 😂😂😂. I hope the State fixes this. ❤

[@ElizabethPW]

I agree that no one would know that "file amendment" means terminate!! They really need to work on their user interface, eh?

[@jasmineiris3109]

OMG!!! THANK YOU! You are so helpful. It has been such a struggle to navigate through all of these request. I've actually loss so much sleep over it. I'm so thankful for your videos.

[@ElizabethPW]

You are so welcome!

[@genevieveelaine221]

I cannot thank you enough for posting this video! I wasted all afternoon trying to figure out how to cancel my LLC online with no success. I canceled an LLC online in CA before without any trouble but it has changed. Now, if only I could figure out EINs - I will have to search your videos.

[@ElizabethPW]

Glad it was helpful to you!

[@muditjain7667]

Thank you so much for creating this video. CA website is complicated with so much bureaucracy specially that web access needs to be requested before it will show the correct forms. They also strangely use different terms "elect to terminate" vs "dissolve" in different places for no reason. Your video helped explain the process very clearly.

[@kiecoughlin]

This was super straight forward and helpful. Thank you!!!!!!!

[@ElizabethPW]

Welcome!

[@DawnKellyMedia]

OMG THANK YOU!!! I'm closing my photo business and opening a media company.

[@ElizabethPW]

welcome!!

[@dahb81]

Was an absolute help !! Thanks for the video & saving my headache :)

[@ElizabethPW]

Glad it helped!

[@kevinvillanueva137]

Thank you for taking the time to show us how to terminate an LLC in California (:

[@ElizabethPW]

welcome!

[@danielyi5650]

Really love your advice! There's such a lack of information online, and though you may not have too many views, your videos are helping me tremendously. Thank you so much for this video!

[@ElizabethPW]

Glad you found them useful!

[@destinybrousard6046]

Thank you so much for getting back to me!

[@zhensguo9689]

This is really helpful. I've been searching for detailed explanation of the process for a while and finally got to your video. it's so organized and explained the process in details with demos on the real website! Thank you so much for sharing this!

[@ElizabethPW]

Great to hear, thanks!

[@sophierandone2234]

Thank you lady! This was awesome ! You calmed down my anxiety 🎉

[@KackJack45]

no because when i say all my damn anxiety ok she did say we had to file taxes for the llc even though we did not use it

[@maggiedomingo1126]

THANK YOU for sharing this information! This is exactly what I was looking for and needed help with.

[@citapaaid3592]

AGGGGGHHHH THANK YOU GLAD I DID IT TODAY MY 12 months literally was today !!! I was so worried about this. I didn’t wanna be responsible in any way if I didn’t file taxes or whatever but I don’t even need an llc so why spend that money yk. Maybe later in life. But thanks so much you are so appreciated

[@ElizabethPW]

Great to hear that you made the deadline!

[@javonne2561]

My situation is to dissolve in California due to moving out of state and need to start a new LLC in the other state. So I was looking for more clarity in this type of scenario. At least I know where to start looking, thank you

[@ElizabethPW]

Welcome!

[@janicepaiement6432]

YOU ARE GREAT!!!! Appreciate you SO MUCH, Thank you! It has been a while since I have closed a corp and before Covid I was able to easily close online. Now, you have to request the pin to get access which I did for 3 clients and they never received it. Same address too, so no issue there. I am going the paper route this time to be sure.

[@ElizabethPW]

Great to hear that it helped you! You know, I have not heard of anyone who has received their PIN - makes me wonder if it actually happens

[@dmsrated]

This video saved me. Such great information and well explained. Thank You!!!

[@user-zg6ns6mc3u]

It was very helpful for me to terminate my LLC. You probably saved me hundreds of dollars on counselors or lawyers. What you do is truly inspiring, Elizabeth. Thank you for your time and knowledge! I would like to ask two questions. The first one is: I followed your instructions on bizFile and terminated my one-person LLC. Is that all, or is there anything else I need to do next? The second question is: I would like to start a nonprofit in California. Do you have any videos explaining how to do that?

[@ElizabethPW]

Great to hear! So if you set up anything else, you need to close those down (business license, bank account, etc.). You might need to file a final tax return (depends if your biz operated and/or was opened for more than a year). I'm not the person to ask about non-profits, sorry! Here's a law firm I recommend www.fplglaw.com/

[@yeseniafranco5176]

Very well explained! Straight to the point. 🙌🏻

[@nickisashkir]

Thank you! I created an LLC but didn't realize there's an $800 tax due yearly. Not yet ready to launch my idea and need a few years to work on it.

[@ElizabethPW]

Glad to help!

[@blossomheartbyirene]

Thank you for your help. In January I filed to terminate but realized it said pending termination. I filed the wrong form. I just did it again and it was terminated immediately.

[@the_silver_liningg]

This was very helpful! Thank you

[@pickerspodcast]

Thanks for walking me through that.

[@ElizabethPW]

You bet

[@norahofmans4280]

Thank you so much for your help. With your information I was able to be connected and then file to be dissolved. Now waiting on the final paper. But, I am done.

[@ElizabethPW]

Glad it helped

[@davesmortgage]

Very well explained. Thanks for helping explain the ins and outs of terminating the CA LLC. Very Helpful :)).

[@ElizabethPW]

Welcome!

[@keshastowe6854]

Thank you so much, I was struggling to find the termination form. I appreciate you.

[@ElizabethPW]

Glad I could help!

[@kaibakorp11]

Thank you so much for this video. It helped so much! I can breathe easily now that it got done.

[@ElizabethPW]

Glad it helped!

[@katebarber4517]

Great Video I followed along and got it all filed and ready to mail in the old way. Thank you so much for your help. 😃

[@ElizabethPW]

Great to hear!

[@user-im5zv6ou1t]

You are an angel!!! How can this be soooo complicated!? THANK YOU!

[@ElizabethPW]

You're welcome!

[@ariellemccracken9565]

super helpful! thanks!

[@fn-2187]

This was amazing information. Thank you so much. Now I know where to start to ask for legal advice.

[@ElizabethPW]

Welcome!

[@Robert____2121]

I’m about to terminate my LLC and wanted to know if I would still need to pay the $800 LLC fee. I haven’t conducted business at all this year and I’m about to file my final tax return. Thanks for all the help!!

[@ElizabethPW]

Here's some info about what you may need to do kzbin.info/www/bejne/mHLTi6yKq5qhn5o

[@johnnytran62]

Great video very clear and concise!!!

[@kathrynhill160]

Thank you! This was really helpful. Very organized video and saved me a lot of stress.

[@ElizabethPW]

Glad it helped!

[@jessiezavala8788]

Very Helpful video, thank you for such thoughtful information.

[@ElizabethPW]

Glad it was helpful!

[@EmersInFFT]

Hi Elizabeth! Your videos have been very helpful--thank you for taking the time to make them. I know it's very last minute, so I don't expect a response, but it would be amazing if you did. I terminated my LLC as of today 4/15/24 and also filed and sent my Involuntary Dissolution FTB waiver last friday. Being that it's terminated, do I still need to pay the $800 franchise fee and file taxes? The LLC was initiate in 6/2022 and never did business.

[@ElizabethPW]

Since it existed for over one year then technically you have to pay/file taxes unless you get the waiver

[@shaivaljava401]

thanks for the info,

[@GuillermoGarciaSE]

Thank you for making this video, It was very clear and to the point. It is much appreciated.

[@ElizabethPW]

You're welcome, great to hear!

[@aimixia]

great video, thank you!

[@daniellapcosta]

Thanks so much Elizabeth! You're amazing! Merry Christmas :)

[@ElizabethPW]

Thanks!

[@DerekForde]

Thank you so much. The whole process without you is confusing.

[@ElizabethPW]

Glad to hear it helped!

[@AlinaHuynhArt]

this is super helpful :) thanks Elizabeth

[@wisamkhazaal1254]

You are awesome I think you covered everything in a probational way. Thank you

[@ElizabethPW]

You're very welcome!

[@jenoh3779]

Thanks for the video! 😊🙏🏻

[@ElizabethPW]

You're welcome 😊

[@carosity]

this was beyond helpful. thank you so much!!

[@ElizabethPW]

welcome!

[@Authentici_D]

Thank you. You cleared up many things for me. I had a lawyer open up the LLC for me earlier this year and I have been requesting access for the past month. This is probably why the option to terminate are grey and not clickable on the file amendment section on bizfile. Smh. I think I am going to just file it in person and have the SOS send it form me if anything. Thanks again.

[@ElizabethPW]

Ah yes. The weird aspect is the bizfile system won't let me add a client's email to the LLC I file for them -- it is only set up so they can request access. Cumbersome.

[@FTGMotorsports]

Incredibly clear and concise explanation - thank you

[@ElizabethPW]

Welcome!

[@ryanhuff585]

Thank you for this. This was exactly what I needed.

[@ElizabethPW]

So glad!

[@dBugSlayer]

Thank you so much Elizabeth. Your walkthrough was tremendously helpful!

[@ElizabethPW]

Glad it was helpful!

[@MusicandMonsters]

Thank you for this video! It was very helpful!

[@ElizabethPW]

Glad it was helpful!

[@brianadunn36]

Thank you for helping me figure out how to terminate my business. Ironically today was the day before it made 12 months since i made it lol I Think that is how the termination was approved instantly.

[@ElizabethPW]

Ah, great to hear it went well!

[@drufe]

Thank you for this video! Super helpful.

[@ElizabethPW]

Welcome!

[@MrMountain707]

Great video. And great attitude. Keep up the good work!

[@ElizabethPW]

Thanks so much!

[@oltreehuiwork9283]

Thank you Elizabeth for this amazing video! Thanks to your help, I just filed my short form termination through bizfile. On the website of state of California franchise tax board, I found a line that states "If you cancel your LLC within one year of organizing, you can file Short form cancellation (SOS Form LLC-4/8) with the SOS. Your LLC will not be subject to the annual $800 tax for its first tax year." Does it mean I don't need to pay the $800? Thank you!! And do I need to notify IRS about it? Would be nice if you can advise me on this.. Best wishes :)

[@ElizabethPW]

Right if you filed the short form within 12 months and never operated the business, then no $800 franchise fee. The IRS only gets notified if you created an EIN with them (then you can close the EIN account)

[@saidhofiani2670]

wow those forms were a pain to find! THANKS!

[@ElizabethPW]

welcome!

[@creativecapitalists]

Very helpful, thank you. For those that have let inactive entities sit idle (stopped doing business for 1 year or more) or have essentially abandoned their entity without paying the annual CA franchise tax, do you recommend folks use the CA Voluntary Admin Dissolution/Cancelation process to seek termination?

[@ElizabethPW]

Yes

[@jazminaguilar1295]

this was super helpful and to the point. thanks queen

[@ElizabethPW]

Welcome!

[@katherineyeagel4486]

thank you, this video was tremendously helpful!!

[@ElizabethPW]

Welcome!!

[@kitcullinane5115]

Thanks, your tutorial was very helpful

[@ElizabethPW]

Welcome!

[@klossw]

Amazing video! So helpful. Thanks

[@ElizabethPW]

welcome!

[@annanguyen356]

This is so helpful!

[@ElizabethPW]

Glad it was helpful!

[@user-ql9tt3tq2x]

This was really helpful! Thank you!

[@ElizabethPW]

Glad it was helpful!

[@davidjeffers-kc6zp]

Thank you so much they were going to charge me 200 bucks to do this

[@ElizabethPW]

Ah, good to help out!

[@AlexiaZambrano]

You saved me! thank you so much for existing!!

[@ElizabethPW]

Happy to help!

[@kosmicdriver]

Thanks a lot, really helpful and detailed info

[@ElizabethPW]

Glad it was helpful

[@leemcmullan]

thank you seriously you are on a different level!

[@ElizabethPW]

You're so welcome!

[@user-bv9vy9pe8f]

Elizabeth thank uou for the content. Once you get access. Will it then go straight to my records?

[@ElizabethPW]

Once you get access it should be in your records, or you can just search for it

[@phillipengel1504]

This video was very helpful, thank you. I have a question about timing. I am closing an LLC I've had since 2005. For 2023 I have not done any business in the LLC. I have a checking account for the LLC with a little money in it (under $100). There is no debt. I would like to close the LLC before the end of the year so I don't have to pay the $800. There are 4 steps I need to do: terminate the LLC with bizfile, file the final tax returns, close the checking account and close the EIN with the IRS. My question is what is the correct order. I thought I would start with terminating the LLC on bizfile and then close the bank account and then file the final return when the forms/software is available for 2023 and finally close the EIN. But in the video you mentioned that the bank account should be closed before submitting the termination. I was thinking that I might need the bank account to pay for any fees during the winding down process. Can you clarify the order in which these things should happen? And thank you again.

[@ElizabethPW]

If you just have the bank account open to pay the last taxes and such, that should be fine -- just need to not be doing actual business anymore

[@ConfessionsofaBakingQueen]

Thank you for this clear video, so helpful! I am terminating my LLC in CA but opening an LLC in Texas for the same company- when you mention at the ending making sure everything is closed like bank accounts etc. I would be opening my Texas LLC under the same EIN so can I keep it all the same or you suggest closing bank accounts and reopening? And if I am moving in January should I put the future day of 12/31/23 for termination of the business to try and avoid paying the $800 annual CA fee? Thanks so much!!

[@ElizabethPW]

I'd agree that yes you'd want to shut it down by 12/31 so you can avoid an extra year of $800. Generally people do keep the same EIN and bank account, but you'd need to check with your bank to make sure they are okay with it

[@parsianproductions6596]

Thank you so much friend, this helped a lot

[@ElizabethPW]

Glad it helped!

[@RavinderKakkar-rc3po]

Thanks for the valuable information.

[@ElizabethPW]

Welcome!

[@breannabridge601]

You are such a huge help, THANK YOU!!!

[@ElizabethPW]

Happy to help!

[@Jennifer-tg2mn]

Thank you for this it has helped me tons :)

[@ElizabethPW]

I'm so glad!

[@ericsframe9189]

Hey Elizabeth, I appreciate you taking the time to answer these questions. My LLC technically started business, but never ended business (meaning we began a contracted project, but the contract was never fulfilled and no revenue was earned) are we still subjected to file the short form? 2. We filed our Articles of Organization on Jan 24th 2023, do we still have to pay the $800 fee in if we terminate before Jan 24th? God bless.

[@ElizabethPW]

Hm my thought is that the LLC was in business if it offered services (but just didn't get paid). However, there was a rule for 2023 that there is no franchise fee for the first year. If you chance the LLC RIGHT NOW ASAP then you would also not owe for 2024 (if before Jan 14th)

[@cottageindustry1265]

So helpful, the video is just what I needed! Do you know if any steps are required to dissolve the EIN? Thank you!

[@ElizabethPW]

Hm well you will file your final tax return (you just check "final" on the return) to let the IRS know it is closed. Also check this out: www.irs.gov/businesses/small-businesses-self-employed/closing-a-business

[@InnoventLaw]

Great video! Thank you for sharing

[@ElizabethPW]

welcome!

[@katiebartnett4103]

Great Video! All your videos are so informative. Thank you. Question: If I formed my LLC in Aug 2022 and I want to terminate it in April 2023, do I still need to pay the $800 franchise tax?

[@ElizabethPW]

Not for tax year 2022 but they would want it for tax year 2023

[@freshtaahrar9798]

Thank you so much! so useful info

[@ElizabethPW]

Glad it was useful!

[@residentialred]

this was fantastic!!! and so helpful!!!! thank you so much

[@ElizabethPW]

So glad!

[@your_2040]

hi Again Elizabeth... can i ask for your advice on something called 'California Statement of Information'. namely is this something mandatory that is a must do? i have already submitted the paper work to close my LLC (i sent it via mail so i know it will be a bit slower)... and this 'California Statement of Information' is due in the meantime... Any advice would help. I have an advisor and TBH they are really not helpful. Which is why i'm asking you AND appreciate your channel there. thank you -Jonelle (same account as residentialred... forgot to log in under that one)

[@brandonyoung21]

Thank you so much for this video

[@ElizabethPW]

You are so welcome!

[@marbellaangel2861]

Hello! Thank you for doing this.

[@ElizabethPW]

No problem 😊

[@girl_unfiltered]

This is so useful, thank you! If I'm terminating a CA business in March and moving it to another state, am I still liable to pay taxes and the full $800 for that year? Just wondering if I should wait to close it down.

[@ElizabethPW]

My understanding is that if the business operated in CA for Jan to March then yes you'd still owe the $800 franchise fee

[@jacobmaldonado2329]

Thank you!

[@ElizabethPW]

Welcome!

[@ednasalinas5975]

Your explanation is great. Today is Dec 5, 2023, the BizFile System is pretty much the same, still calling it "File Amendment" but I don't see the Termination-Short Form any longer. By the way, do we have to do anything with the EIN? Thanks for your great work.

[@ElizabethPW]

The short form will disappear for you if your entity has been existing for more than 12 months. You don't really tell the state about the EIN via bizfile -- it will just be on your tax return

[@destinybrousard6046]

Hello, thank you for this informative info. 2 questions for you. 1. Do we have to notify anyone else outside of the state like FTB or federal? 2. I took of everything but closing my business checking account yet is that going to be an issue? I look forward to your response for clarity with a grain of salt of course.

[@ElizabethPW]

Here are some videos on that kzbin.info/www/bejne/fHmraJeBo5eUmNE kzbin.info/www/bejne/mJrVc6WFnJqjpLM

[@MC-gf9su]

Do we need to sign a board resolution for voting only for internal company records - in addition to submitting Form LLC-4/7 as all members vote to dissolve? (Your video is so helpful!) Thanks

[@ElizabethPW]

Yes have a written resolution for your internal purposes

[@brandontijerino6385]

Thank you Ms. Weinstein you saved me time & money with this video

[@peggysaydell4982]

Thank you Elizabeth. This video was very helpful. I haven't tried this process yet, but I'm sure there is a fee involved to this filing which wasn't mentioned but I assume it is listed on the form or web page. Thanks!

[@ElizabethPW]

Interestingly, LLC termination in CA doesn't have a fee!

[@hansolotravels]

I am curious about this as well as I am trying to dissolve an LLC in CA that was never started. What fee are you talking about? 3rd party company are trying to charge $120 to do this but the process in this video is very straight forward and doesn't mention any fees.

[@rowenakillens]

Hi Elizabeth! I just started watching and LOVE your videos! New Subscriber here!! So happy that someone in California is sharing helpful videos ♥ I have a question. I would like to start an LLC and have a business name in mind, but it's already taken (showing as 'initially filed' and 'terminated' in 2018). How can I obtain this business entity name for my company, since it seems like the previous INC. did not keep it for very long? Thanks so much for all of your help!! You are amazing!

[@ElizabethPW]

Hi - my understanding is that if a business entity has been terminated, the name should be released for others to reserve or use for their LLC. The bizfile system should let you do that (obviously something could be wrong with it -- they are still working on the bugs)

[@rowenakillens]

@@ElizabethPW Thank you so much for responding so quickly!! You are awesome!! I am crossing my fingers that is the case! Thanks again for all of your support!

[@JustDe0]

This was great thank you 😊

[@ElizabethPW]

welcome!

[@LittleMoreHelp]

Everything is greyed out, not clickable for expect the "Resignation of Agent for Service of Process". is that normal ? I opened my LLC 3 months ago ?

[@ElizabethPW]

Hm I wonder if it is the access you have to the account, that you have "registered agent" access instead of full access. Look at the "manager user access" button to see if you have full access or something else

[@shrit9072]

@@ElizabethPW I have the same issue. Cannot seem to find "manager user access" button.

[@Andrew-hn2jk]

@@shrit9072 did you ever end up figuring it out I'm in the same situation

[@user-ih3se8lj2q]

Hi Elizabeth, thanks for the great video and all that you do. One question; I had a California single member llc and recently completed the articles of conversion for the state of Florida when I changed residency. If I understand correctly, since I will no longer be conducting business in California and the llc is in good standing, then I only need to file the certificate of cancellation in California. Is this correct? Thanks again for all the great content!

[@ElizabethPW]

I file the conversion in both states -- convert in and convert out.