Should I file dissolution or bankruptcy for my business? Should I just do involuntary dissolution by not doing my annual filing?

When you start up a new business, either as a corporation or LLC, you usually have to personally guarantee the debts for the business because the business has no assets or credit of its own. But one of the reasons you chose either an LLC or a corporation was to protect yourself from liability in the business. But the reality is seldom as good as our dreams! In many instances, you will have to file a personal bankruptcy and the business can die a natural death when you fail to renew it. Hope this perspective helps!

There are ways that you could be personally liable for the debts of the LLC. Most commonly, it is because you personally guaranteed the LLC debts. Of course, if you do a personal bankruptcy, then you would discharge your personal liability. It is typical for people in positions similar to your's to file a personal bankruptcy and allow the LLC to disolve as you are describing. This is something you should consider carefully with an attorney.

You are only personally liable on those debts that you personally guaranteed or otherwise signed for personally. The business is liable for its own debts. If there are sales taxes or withholding taxes owed, you may be personally liable for those. As far as bankruptcy goes, a business cannot get a discharge. You can close up shop and file to dissolve the business. Surrender the tax ID numbers and let it go if there are no assets. Filing bankruptcy for the business opens up the books and possible you to scrutiny. If you file personally, be certain to list any business debts that you think you may be liable on. See a good bankruptcy attorney for help.