I registered an LLC about two years ago with plans to open a small woodworking shop. Life got in the way, and I never actually launched or earned a dime. But every year I get hit with the state annual report fee and a registered agent bill. I'm paying hundreds of dollars to keep a business alive on paper that doesn't exist. Has anyone dealt with this? Do I just dissolve it?
LLC Fees
The business never started but the annual fees keep coming
Dissolve it. You're paying for nothing. Look up the dissolution form on your state's Secretary of State site. It's usually cheaper than the annual report.
What state are you in? Some states have a minimum franchise tax that's separate from the annual report. If you're in California, you might owe $800 a year regardless.
i did the same thing. Sat on an LLC for three years before I realized I was just donating to the state. Dissolving took 20 minutes and cost me $50. Wish I'd done it sooner.
I'm in Ohio. The annual report is $99 and the agent is another $50. I know it's not huge, but it adds up when there's zero income.
The registered agent fee is the one that gets people. If you're not operating, you can sometimes be your own registered agent and save that part, but honestly dissolution is cleaner.
Don't let it lapse into administrative dissolution. I did that with a different entity and it was a headache to clean up later when I actually wanted to start a new one under the same name.
Ohio's not bad. You could technically keep it alive as a shell for a while, but if the woodworking shop isn't happening in the next year, I'd just close it.
Could you sell the LLC? Sometimes people buy aged entities. Probably not worth the hassle for a simpoe woodworking shop though.
^ That's almost never worth it for a small LLC with no history. Ignore that.
I kept my first LLC on life support for five years. Five years of fees and a registered agent I never used. Final bill to dissolve was less than one year of maintenance. It stung to realize how much I'd wasted.
Yeah, the sunk cost feeling is real. But hearing this makes me lean toward just filing the dissolution. Thanks.
Just make sure you file the final annual report in the same year you dissolve, or they might still bill you for the current cycle.
Also check if you have any outstanding fees already. In some states they won't let you dissolve until you're current, which is a fun catch-22.
For what it's worth, I've never heard of anyone regretting dissolving an inactive LLC. I have heard plenty of regrets about keeping one.
What's the actual process in Ohio? Is it just a form online or do you have to mail something?
Looks like they have an online portal for dissolution now. I'll probably do that this week. Appreciate the push.