LLC in hibernation or what?

Dear fellow community members,

I am currently the owner and CEO of an LLC that has run into significant difficulties amidst this ongoing economic crisis, and I find myself in desperate need of any guidance regarding my next steps... To provide some context, since March of this year, my company hasn't maintained a single physical storefront, nor have we issued a single sales invoice; operations have effectively ceased because I simply cannot afford to meet payroll, all while I am away on maternity leave. The prospect of formally dissolving the business is daunting, as I understand the costs could reach approximately $2333, and given my existing debts, such a move is far from straightforward. Since I currently lack an accountant—as I can no longer afford those professional fees either—it was suggested to me that I might at least place the company into a state of dormancy, or officially file for a suspension of operations with the Secretary of State. I am wondering if such a procedure is actually feasible, and if so, what specific steps one must take to achieve this... 🤷

I would be deeply grateful for any assistance or insight you might be able to offer!

From what I understand, there’s really no such thing as "dormancy." People say that term, but let's be real—if a company isn't actually doing anything, it's effectively dormant anyway. The only thing you can actually do is file a formal notice with the Secretary of State stating that you aren't generating any revenue, just so they don't come knocking for taxes you don't owe. Beyond that, I don't know of any other official way to handle it.

An LLC can't just go into "hibernation" mode. You still have to file all your paperwork, even if you're reporting zero activity for the period. You also need to wrap up your final tax filings and submit them properly. Essentially, the compliance requirements stay exactly the same as when you're fully operational. If things aren't too messy financially, I’d suggest looking into selling the company instead.