The Cheapest Way to Dissolve an LLC (Honest Breakdown)

The cheapest way to dissolve an LLC is to file the state paperwork yourself and pay only the government filing fee. State fees range from $0 in Washington and California to $220 in Delaware. If your LLC is in a free-to-dissolve state with no outstanding tax obligations, you can close it for exactly $0 out of pocket.

That said, DIY dissolution has real risks. A missed step can leave your LLC open indefinitely, meaning fees keep accruing and liability stays active. A professional service starting at $99 removes that risk. Here is an honest breakdown of what dissolution actually costs, what DIY involves, and where the hidden fees hide.

What Is the Cheapest State to Dissolve an LLC?

The cheapest states to dissolve an LLC are those that charge $0 in filing fees and require no tax clearance before you file. Washington, California, Georgia, and Maryland all charge nothing for the dissolution filing itself.

State filing fees for LLC dissolution: $0 in Washington, California, Georgia, and Maryland. $25 in Florida. $40 in Texas. $60 in New York and Wyoming. $100 in Nevada. $220 in Delaware. These are government fees only and do not include registered agent fees or outstanding tax obligations.

Low filing fees do not always mean low total cost. California charges $0 to file a Certificate of Dissolution but imposes an $800 minimum franchise tax for any year the LLC was active. That tax is owed even if you file dissolution in January. If you had unpaid franchise taxes, California will not process your dissolution until those are cleared. The filing fee is $0 but the total cost can easily exceed $800.

Delaware is the most expensive state for dissolution at $220 for the Certificate of Cancellation. Delaware also charges an annual Franchise Tax of $300 per year for LLCs. Both outstanding franchise taxes and the $220 filing fee must be paid before the state will process the dissolution. For LLCs formed through Stripe Atlas (which uses Delaware by default), this combination is the most common surprise founders encounter.

What Does DIY LLC Dissolution Actually Cost?

DIY dissolution means you pay the state filing fee directly, with no service or attorney fee on top. The total DIY cost equals the state filing fee plus any outstanding state taxes or fees you owe. If you are in a $0 state with clean records, you can dissolve for free.

The true DIY cost formula: state filing fee, plus outstanding annual report fees, plus any back taxes owed. In states with no filing fee and no tax clearance requirement, the total can genuinely be $0. In states with franchise taxes or tax clearance requirements, the total is often much higher than the filing fee alone suggests.

The DIY process involves filing dissolution documents with the Secretary of State, notifying creditors, filing final state tax returns, filing a final federal return (Form 1065 for multi-member LLCs, or checking the final-return box on Schedule C for single-member LLCs), and sending a written EIN closure letter to the IRS. Each step requires the right form, the right address, and the right sequence. Missing one can leave the IRS or a state agency with an open account that generates penalties.

The most expensive DIY mistake is failing to file final federal returns. The IRS charges a failure-to-file penalty for partnership returns (Form 1065) of $235 per partner per month, with a 12-month maximum. The minimum penalty for a return more than 60 days late is $485. For a 2-member LLC with a missing final Form 1065 sitting for 3 months, that is $1,410 in penalties, more than the cost of hiring a service.

What Do LLC Dissolution Services Charge?

Professional dissolution services handle the state filing, coordinate tax clearance if required, and often include support for IRS closure. Prices vary significantly depending on what is included.

Service pricing comparison: LegalZoom charges $189 to $279 for dissolution, not including state fees. Northwest Registered Agent charges $125 to $250, not including state fees. Prodezk's state-only plan starts at $99 including the state filing fee coordination, and the Complete Closure plan at $599 covers state filing, IRS notification, and federal return guidance.

Watch the fine print. Many services advertise a base fee but list state fees separately, sometimes without disclosing the total upfront. A service that charges $149 plus the Delaware $220 filing fee is actually $369 for the state portion alone. Compare the total out-of-pocket cost, not the advertised service fee.

The Complete Closure plan at $599 is worth considering if your LLC had any revenue, had employees, or had non-US owners. Each of those factors triggers federal tax obligations that, if missed, generate penalties far exceeding the cost of professional help. The IRS penalty for missing Form 5472 (required for foreign-owned single-member LLCs) is $25,000 per violation per year.

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Do You Need a Lawyer to Dissolve an LLC?

Most LLCs do not need a lawyer for dissolution. Lawyers are worth the cost in specific situations: disputes between members about the dissolution, creditors threatening litigation, contested asset distributions, or tax situations complex enough to need CPA-level advice.

Attorney fees for LLC dissolution range from $500 to $2,500 or more, depending on complexity and location. For a straightforward single-member LLC with no debt, no disputes, and no pending litigation, attorney rates are rarely necessary. A qualified professional service handles the same state filing for a fraction of the cost.

If your LLC had members who disagree about whether to dissolve, or if a creditor has a legal claim against the business, attorney involvement protects you. The cost of a contested dissolution without legal help can far exceed the attorney's fee.

For the vast majority of LLCs dissolving because the business simply stopped operating, a qualified professional service handles the state filing and federal coordination correctly without attorney-level fees.

What Hidden Costs Do Most People Miss When Dissolving an LLC?

The state filing fee is the smallest part of the true dissolution cost. Here are the charges that catch most LLC owners off guard.

Outstanding annual report fees. Many states charge annual report fees, and missing even one year can add $50 to $500 in back fees before the state will process your dissolution. New York charges $9 per year for biennial statements; Nevada charges $350 per year for the Annual List of Managers.

Registered agent cancellation fees. If you use a commercial registered agent, canceling their service requires a formal written request and may be subject to non-refund policies. Some registered agents charge $50 to $100 as a cancellation processing fee.

State franchise taxes for the final year. Delaware LLCs owe $300 for any year they were active, even if you file dissolution in January. California charges an $800 minimum franchise tax for the same reason. These are owed regardless of whether the LLC made any money that year.

Federal return penalties. A missing final Form 1065 carries a $235 per-partner per-month penalty, with a 12-month maximum. For a 2-member LLC that went 3 months without filing, that is $1,410 in penalties. The minimum failure-to-file penalty if the return is more than 60 days late is $485.

What Is the Fastest and Cheapest Way to Dissolve an LLC?

The fastest and cheapest combination is a low-fee state with online filing and no tax clearance requirement. Washington State ($0 fee, 1 to 2 weeks, online through the CCFS portal) and Florida ($25 fee, 2 to 3 weeks, online through Sunbiz.org) offer the best combination of speed and cost.

For the absolute lowest out-of-pocket cost: a $0 filing fee state, online submission for faster processing, and no outstanding state taxes. But verify before you file. A "free" dissolution in a state with $800 in back franchise taxes is not actually free. The filing fee is just one component of the total cost.

If your LLC is already in a specific state, the fastest path is to file correctly the first time. Rejected filings add weeks. Missing tax clearance adds weeks more. A professional service that knows the exact requirements for your state often gets the filing completed faster than DIY precisely because they know which mistakes cause delays and how to avoid them.

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When Does a Professional Service Save You Money Compared to DIY?

A professional service saves you money when the cost of mistakes exceeds the service fee. Based on 24+ years of handling dissolutions across all 50 states, the situations where DIY costs more than hiring help include: LLCs with foreign owners (Form 5472 penalties start at $25,000), multi-member LLCs in states requiring specific tax clearance steps, any LLC that has not filed federal returns, and any dissolution where members disagree about the process.

For a single-member LLC in a $0 state with clean tax records and no foreign ownership, DIY is genuinely the cheapest option. The state filing takes under an hour online, and the federal EIN closure requires only a written letter to the IRS. Total cost: $0 in the right state.

For anything more complex, our state-only plan at $99 or Complete Closure plan at $599 is cheap insurance against penalties that start at $485 for a single late federal return. We have handled 15,700+ dissolutions across all 50 states and 193 countries. We know which states reject filings for which reasons, and we have seen the mistakes that cost LLC owners thousands. Starting at $99, professional service is often the cheapest path when you account for the full cost of getting it wrong.