I run a small e-commerce LLC in Charlotte. Revenue has basically dried up this year. I still have the LLC active but no money coming in. What's the downside of just letting it sit there? I don't want to get fined or lose my house or something. Any practical advice?
LLC
What happens if my Charlotte LLC stops making money?
Not a lawyer but I’ve had a sleepy LLC before. You still owe the annual report fee to the NC Secretary of State. Ignore it and you’ll get dissolved eventually. That’s not the end of the world but if you ever want to use the name again it’s a pain.
Lose your house? Only if you personally guaranteed a loan or lease. LLC doesn’t magically protect you from everything. Did you sign a personal guarantee?
No personal guarantees on anything, thankfully. Just the state fees and my time.
Taxes. Even with zero income you probably have a minimum franchise tax or annual report fee. Miss that and you get penalties. Also if you have a registered agent service they’ll keep billing you.
Just dissolve it. Why kerp a zombie LLC around? Unless you’re hoping it magically starts making money again like a cursed lawnmower.
Dissolving isn’t free either. You still have to file articles of dissolution and settle any outstanding fees. But it stops the bleeding.
if you owe sales tax or have any employees it gets more complicated. Assuming you’re a single-member service LLC with no employees, it’s mostly paperwork.
One thing nobody mentioned: if you just abandon it, the state can administratively dissolve it. But that can look bad if you ever apply for credit or another business license. A clean dissolution is better.
Also check your Charlotte business license. I think there’s an annual privilege license tax. Even if you’re not making money, you might still owe it until you close the account.
Thanks everyne. Sounds like I should just file the dissolution and stop paying the registered agent. Appreciate the reality check.