Do I have to file a final federal tax return when closing my LLC?

Yes. A multi-member LLC files a final Form 1065 with final Schedules K-1; a single-member LLC reports on the owner's Schedule C. Check the final-return box. Form 966 applies to corporations, not to LLCs taxed as partnerships.

How to Dissolve an LLC in North Carolina: Steps & Cost (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

You dissolve a North Carolina LLC by voting to dissolve, winding up the business, and filing Articles of Dissolution (Form L-07) with the North Carolina Secretary of State for a $30 fee. You must also file final federal and state tax returns and close your NC Department of Revenue accounts. North Carolina does not require a tax-clearance certificate before you file.

Quick Answer

Form: Form L-07, Articles of Dissolution
Filing fee: $30, to the NC Secretary of State
Tax clearance: Not required before filing
Statute: Chapter 57D, Article 6 (dissolution and winding up)
Foreign withdrawal: Form L-14, $10
DOR closing: Final returns + Form NC-BN notification

North Carolina Agency and Form: Secretary of State, Form L-07

A North Carolina LLC is legally ended by filing Articles of Dissolution with the North Carolina Secretary of State. The correct document is Form L-07, and the filing fee is $30. Dissolution and winding up are governed by Article 6 of Chapter 57D of the North Carolina General Statutes, the North Carolina Limited Liability Company Act.

Filing Form L-07 ends the LLC's existence, but it is the final step, not the first. You must first authorize the dissolution and wind up the business - settling debts and distributing assets - so that the entity closes cleanly. For the national overview, see how to dissolve an LLC.

Dissolution is a deliberate legal process, not the same as simply ceasing operations. An LLC that stops doing business but never files Articles of Dissolution remains a registered entity, still owes the $200 annual report, and can still be sued or assessed taxes. Filing Form L-07 is what formally terminates those ongoing obligations, which is why closing the entity on the record matters as much as stopping day-to-day activity.

How to Dissolve a North Carolina LLC, Step by Step

Dissolving a North Carolina LLC is a five-step process. Each step aligns with Article 6 of Chapter 57D or a federal tax rule.

Vote to dissolve. Approve dissolution as your operating agreement requires or, if it is silent, by the members under Article 6 of Chapter 57D. Record the decision in writing (a resolution or written consent). This is the internal authorization to close.
Wind up the business. Collect the LLC's assets, pay or make provision for creditors, and distribute any remaining assets to members according to their interests. Winding up is governed by G.S. 57D-6-07 and must be completed before or alongside the dissolution filing.
File final tax returns and close DOR accounts. File final federal and North Carolina income returns, and final sales and use tax and withholding returns if you had those accounts. Notify the NC Department of Revenue that the business has closed using Form NC-BN, the Out-of-Business Notification.
File Articles of Dissolution (Form L-07). Submit Form L-07 to the NC Secretary of State and pay the $30 fee. File online through Online Business Services or by mail. Acceptance ends the LLC's legal existence.
Close accounts and cancel registrations. Close bank accounts, cancel local licenses and permits, and withdraw any foreign registrations in other states. If your LLC was a foreign entity registered in North Carolina, cancel that authority using Form L-14 for a $10 fee.

North Carolina Dissolution Fees (2026)

The table below lists the fees involved in closing a North Carolina LLC, verified against the NC Secretary of State fee schedule. Amounts are effective for 2026.

Item	Form	Fee (2026)	Agency
Articles of Dissolution (domestic LLC)	Form L-07	$30	Secretary of State
Withdrawal of foreign LLC authority	Form L-14	$10	Secretary of State
Reinstatement after administrative dissolution	Form L-08	$100	Secretary of State
Out-of-Business Notification	Form NC-BN	$0 (free)	Dept. of Revenue
Federal final return	Form 1065 / Schedule C	$0 (free)	IRS

There is no state charge for filing final tax returns or the NC-BN notification. The $30 dissolution fee is the main direct cost. Compare the full cost of running the LLC at North Carolina LLC cost.

Final Tax Steps With the IRS and NCDOR

Closing an LLC has federal and state tax steps beyond the Secretary of State filing. Federally, a multi-member LLC files a final Form 1065 with final Schedules K-1, and a single-member LLC reports its final activity on the owner's Schedule C; you check the "final return" box. Form 966 (Corporate Dissolution or Liquidation) applies only to corporations, not to an LLC taxed as a partnership or disregarded entity. If you had employees, file final employment tax returns.

At the state level, file your final North Carolina income return, and final sales and use tax and withholding returns for any accounts you held, then submit Form NC-BN to notify the NC Department of Revenue that the business has closed. North Carolina does not require a tax-clearance certificate from the Department of Revenue before you file Articles of Dissolution. See the annual filing and tax details at North Carolina LLC annual report and taxes.

Administrative Dissolution vs. Voluntary Dissolution

There are two ways an LLC's life can end. Voluntary dissolution is the deliberate process above. Administrative dissolution happens when the Secretary of State dissolves the LLC for cause - for example, if the LLC does not deliver its $200 annual report within 60 days after the April 15 due date, or fails to maintain a registered agent, under G.S. 57D-6-06.

Administrative dissolution does not erase liabilities or tax obligations, and it is not a substitute for winding up properly. If your LLC was administratively dissolved and you want to revive it, file an Application for Reinstatement (Form L-08) and pay a $100 fee, plus any delinquent annual reports. Simply letting the LLC lapse is more expensive and messier than a clean voluntary dissolution.

Notifying Creditors and Winding Up Correctly

Winding up under G.S. 57D-6-07 is more than closing the doors. The LLC must collect its assets, discharge or make reasonable provision for its liabilities, and only then distribute any remaining assets to the members in proportion to their interests. Paying members before creditors can make those members personally liable for amounts that should have gone to creditors first.

North Carolina law also lets a dissolved LLC manage claims in an orderly way. You can give known creditors written notice of the dissolution with a deadline to submit claims, and publish notice to reach unknown creditors, which helps bar late claims and gives the members certainty that the wind-up is complete. Keep documentation of every debt paid and every asset distributed, because these records protect the members if a question arises after the LLC is gone.

Closing Your EIN and Business Accounts

After the final federal return is filed, you can close the LLC's IRS business account associated with its EIN by sending the IRS a letter that includes the entity's legal name, EIN, business address, and the reason for closing. The EIN itself is never reassigned to another business, but closing the account signals that the entity has ceased operations. Retain your tax records for the period the IRS recommends in case of later inquiry.

Separately, close the LLC's bank accounts only after all final checks clear and taxes are paid, and cancel any recurring vendor agreements, merchant accounts, and business licenses or permits. If you registered your EIN for payroll, confirm final employment tax deposits and returns are complete before closing. Doing this after - not before - the wind-up avoids leaving obligations unpaid.

Common Mistakes to Avoid

The most common mistake is abandoning the LLC without filing Articles of Dissolution. An LLC that is not formally dissolved keeps accruing the $200 annual report obligation and can face administrative dissolution and reinstatement costs later. Another mistake is distributing assets to members before paying creditors, which can expose members to personal liability for unpaid debts.

Also remember to cancel out-of-state foreign registrations, close your EIN account with the IRS by letter if you no longer need it, and keep records of the dissolution. Doing the steps in order - vote, wind up, final taxes, then file Form L-07 - avoids the most common problems. For background on the entity itself, see what is an LLC.

Frequently Asked Questions

How much does it cost to dissolve an LLC in North Carolina?

The filing fee for Articles of Dissolution (Form L-07) is $30, paid to the NC Secretary of State. There is no state tax-clearance fee. A foreign LLC withdrawing from North Carolina files Form L-14 for a $10 fee instead.

What form do I file to dissolve a North Carolina LLC?

Articles of Dissolution, Form L-07, with the NC Secretary of State. File it online through Online Business Services or by mail with the $30 fee once you have wound up the business.

Do I need tax clearance to dissolve an LLC in North Carolina?

No. North Carolina does not require a tax-clearance certificate from the Department of Revenue before you file Articles of Dissolution. You must still file final returns and notify the Department using Form NC-BN.

What happens if I just stop filing my annual report?

The Secretary of State can administratively dissolve the LLC under G.S. 57D-6-06 if the report is not delivered within 60 days after its due date. That does not end tax obligations, and reinstatement later costs $100 using Form L-08.

Do I have to file a final federal tax return?

Yes. A multi-member LLC files a final Form 1065 with final Schedules K-1; a single-member LLC reports on Schedule C. Check the final-return box. Form 966 applies to corporations, not LLCs taxed as partnerships.

Sources

NC Secretary of State - Closing a North Carolina Business (Articles of Dissolution; steps).
NC Secretary of State - LLC Filing Fees ($30 Articles of Dissolution; $10 withdrawal; $100 reinstatement).
NC Secretary of State - LLC Forms (Form L-07 Articles of Dissolution; Form L-08 Reinstatement; Form L-14 Withdrawal).
NC General Statutes - Chapter 57D, Article 6 (PDF) (dissolution and winding up, G.S. 57D-6-01 through 57D-6-08).
NC General Statutes - G.S. 57D-6-06 (administrative dissolution; 60-day annual report grace).
NC Department of Revenue - Registration and Out-of-Business Notification (Form NC-BN; final returns).
IRS - Closing a Business (final Form 1065; Form 966 corporations only).
NC General Statutes - G.S. 57D-6-07 (winding up; asset distribution and creditor claims).
NC General Statutes - G.S. 57D-6-01 (grounds and authorization for dissolution).
IRS - Canceling an EIN / Closing Your Account (close the IRS business account by letter).
Legal Information Institute - 26 U.S.C. 6072 (federal return due dates).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the North Carolina Secretary of State and North Carolina Department of Revenue before acting.