When forming a Limited Liability Company (LLC), one of the most common questions new business owners ask is: How long does an LLC last? Is it permanent? Does it expire? Do I have to renew it every year?
Understanding the lifespan of your LLC is essential for long-term planning and legal compliance. Here’s everything you need to know about how long an LLC lasts and what factors can affect its duration.
The Default Lifespan of an LLC
In most U.S. states, when you form an LLC, it is created with perpetual existence by default. This means your LLC can continue to exist indefinitely, as long as you meet ongoing state requirements like annual reports and fee payments.
Unless you specifically indicate an end date in your Articles of Organization, your LLC is assumed to last forever.
Can an LLC Have a Limited Duration?
Yes. Although it’s rare today, some LLCs are created with a specified lifespan. For example, you might set up an LLC to last for 5 or 10 years if you are forming it for a short-term project or a specific investment.
If you choose this option, the expiration date must be clearly stated in your formation documents when you register the LLC with the state.
What Can Cause an LLC to End?
Even if your LLC is set up with perpetual existence, certain events can still cause it to end:
- Voluntary dissolution: Members choose to close the business.
- Failure to comply: Missing annual reports, state filings, or fees can result in administrative dissolution by the state.
- Legal actions: A court can order the dissolution of an LLC in cases of disputes or legal violations.
- End of duration: If your LLC was created with a fixed expiration date, it will automatically dissolve once that date is reached—unless extended.
Renewing or Extending an LLC
If your LLC was formed with a limited duration, you can usually extend its life or convert it to perpetual by filing an amendment to your Articles of Organization. This process varies by state, so it’s important to check with the Secretary of State where your LLC is registered.
Keep Your LLC Active
To keep your LLC alive and in good standing, you must:
- File annual or biennial reports, depending on your state.
- Pay the required state maintenance fees or franchise taxes.
- Maintain a valid registered agent and business address.
- Comply with any state-specific rules regarding your business.
Helpful government resources:
Final Thoughts
In general, an LLC lasts as long as you want it to—provided you stay compliant with state regulations. Whether you’re building a long-term enterprise or launching a short-term venture, your LLC’s lifespan can be tailored to suit your goals.
If you’re unsure about your state’s requirements, consulting a business attorney or using a professional LLC formation service can help ensure your company stays active for as long as you need it.