Close your business the right way
What you should know
01
The main difference between dissolution and termination of an Iowa LLC is that dissolution is the process of winding down the LLC's affairs, while termination is when the LLC ceases to exist legally
02
Dissolution
This process begins when a triggering event occurs, such as an event stated in the operating agreement, the consent of all members, or the passage of 90 consecutive days without members. The LLC's purpose changes to winding up and liquidating, and it can no longer conduct its regular business. The LLC continues to exist for the purpose of winding up its affairs, which includes paying off debts, liquidating assets, and distributing cash to owners. A Statement of Dissolution is filed with the Iowa Secretary of State, Business Services Division (SOS) to indicate the dissolution.