New business owners often have an understanding that certain legal formalities must be taken when a business opens - but they may not know that similar formalities apply if and when the business closes. In fact, if a limited liability company ("LLC") or other business entity has ceased operations, it must be formally terminated through a process called dissolution.
Under Ohio law, a limited liability company ("LLC") must be dissolved if it has fulfilled its purpose or there is a unanimous agreement amongst the members to dissolve the company. A court may also instruct the LLC to wind up its business. As a final step after its affairs are concluded, the LLC and/or member must file a Certificate of Dissolution with the Ohio Secretary of State.