Q: Is there a way to temporarily pause my LLC business?
– Needing a Break
A: Needing a Break,
It’s completely normal to go through uncertain phases with your business, even in the best of times. You may need some time to regroup and figure out whether you want to pivot with your business or retire it for good. As long as you’re willing to continue paying for the LLC, you can hold onto it as long as you need to.
If you’re unsure what you want to do, you can simply stop conducting business for a while. Full stop. As long as you keep submitting the proper documentation for federal and state tax filings, and paying the proper fees (usually an annual fee), there’s no rule that says you have to bring in a certain amount of revenue or conduct business in the same way you were conducting it before.
The only way you will be able to stop filing taxes and paying fees for your LLC is if you permanently dissolve it. To dissolve it, each member must agree to terminate the business and submit an individual statement of dissolution to the Secretary of State for whatever state the LLC was organized in.
If you’re not sure whether to switch gears or completely shut down, and you want some help considering your options, contact a Family Business Lawyer™ to help you do so.