Step 4: Tax Clearance Certificate – 19 Pa. Code § 13.13(d).
A dissolved LLC seeking to terminate must submit all tax forms due and pay all taxes and charges. Pennsylvania requires clearance certificates from the Department of Revenue (DOR) and the Department of Labor and Industry (DLI) before terminating your LLC. (15 Pa. Cons. Stat. § 139(a)(3) (2023).) To obtain those certificates, you must use a DOR Form REV-181 (application for tax clearance certificate). In addition to obtaining tax clearance from the state, it’s a good idea to file the following tax-related documents as part of dissolving your LLC:
- final business tax returns
- if you have employees, a final Form PA-W3 (quarterly withholding return) or
other relevant tax withholding form; and - if you sell goods, a final sales tax return.
You can use DOR Form REV-1706 to cancel a range of state-tax-related accounts, such as a sales tax license or employee tax withholding account.
When you file your federal tax return, check the “final return” box on your IRS Form 1065 (if your LLC is classified as a partnership for tax purposes) or IRS Form 1120 (if your LLC is classified as a corporation for tax purposes).
If you need assistance dissolving and terminating your LLC, don’t hesitate to contact me at 215.551.7109. Let’s discuss how I can help you navigate this process smoothly.