DIY LLC Shutdown vs. Starcycle: What Each Route Costs

What a DIY LLC shutdown involves

A DIY LLC shutdown means you prepare and file every closing document yourself, with your state, the IRS and each office that licensed you. For most LLCs the work comes down to the same tasks:

1. Approve the dissolution: follow the vote your operating agreement sets out and record the decision in writing.
2. File with your formation state: the closing document is called Articles of Dissolution in Florida, a Certificate of Cancellation in California and Delaware, and a Certificate of Termination in Texas.
3. Clear your state taxes: some states ask for proof before they accept the filing, and Texas wants a certificate of account status from the Comptroller attached to its termination form.
4. File your final federal return: the IRS checklist for closing a business names the return for each tax classification:
   • Form 1065 for an LLC taxed as a partnership, with the "final return" box checked
   • Form 1120 or 1120-S for an LLC taxed as a corporation
   • Schedule C, filed with your own Form 1040, for a sole proprietor
5. Close out payroll and contractors: if you had employees or paid contractors, the same checklist lists:
   • A final Form 941 or 944, with the box checked to tell the IRS your business has closed
   • A Form 940 with box "d" checked to show the return is final
   • Forms W-2 for your employees and Form 1099-NEC for contractor payments
6. Close your IRS business account: the IRS deactivates an EIN (Employer Identification Number, your federal tax ID) once you write to it with your LLC's legal name, EIN, address and reason for closing, and all returns are filed and taxes paid.
7. Cancel what you registered: the SBA's guide to closing a business tells you to cancel the registrations, permits, licenses and business names you no longer need.
8. Withdraw from other states: an LLC registered to do business outside its home state files a separate withdrawal in each one.
9. Keep your records: the IRS asks you to keep employment tax records for at least four years.

Set out in full, it's a lot, especially when your head and heart are already moving on. The order matters at one point. The IRS closes the business account only once every return is filed and the tax is paid, so the letter in step 6 waits for the returns.

Older checklists also carry a beneficial ownership (BOI) report, and that item has gone: FinCEN exempts U.S. companies from BOI reporting. Confirm your own filing list with your CPA, and see our main guide for the core steps to dissolve an LLC, in order.

What Starcycle does

Starcycle is a business shutdown service for U.S. LLCs and corporations that pairs software with a human team. It builds a tailored action plan, prepares and files the state dissolution paperwork, tracks key dates and contract and subscription cancellation timelines, and keeps your closure documents in one place. Final tax returns are coordinated with a partner CPA or your own.

Your case takes one of two paths. A simple case is one like a single-member LLC registered in one state, with no investors and no contracts still running. You get a quote from the intake and move straight to closing. If it has more moving parts, such as several states, investors or a lease, you get a dashboard and a dedicated person on the team. The services page lists what each path includes.

DIY vs. Starcycle: who does which task

On the DIY route every task below sits with you. With Starcycle, the team builds the plan, prepares and files the state paperwork and tracks the dates, while tax and legal judgment stays with your CPA or lawyer.

If you want to see how other providers divide the same work, we've compared business shutdown services in a separate post.

What a DIY LLC shutdown costs

The one fixed cash cost of a DIY LLC shutdown is your state's filing fee, and in the four states below it runs from nothing to $220. These are each state's own published fees for closing a domestic LLC:

DIY is possible, and the "free" route still sends a bill: in California the filing itself is free and the annual tax is not. The filing fee is one line, and a DIY budget usually has a few more:

• Taxes due up to the closing date: California charges every LLC an $800 annual tax until you cancel it. Delaware lists its cancellation fee as "plus annual taxes to cancel".
• Certified copies: optional, at $5 in California and $30 in Florida.
• Other states: each state where your LLC is registered has its own withdrawal filing and fee.
• Your CPA: whatever they charge to prepare your final returns.
• Your own hours: these depend on how many states, tax accounts and contracts you have. We haven't found a reliable public figure for the average, so we don't quote one.

Every hour you spend wrangling paperwork is an hour not spent on job-hunting, consulting or prototyping your next idea. Starcycle's price depends on your case, so you get a quote upfront after the intake. The current starting price is shown in the pricing section of the homepage at starcycle.ai. For every state's figure, see LLC dissolution fees by state, and for costs beyond filings, what you'll pay to shut down a business.

Where business shut down software helps, and where it doesn't

Software helps with the parts of a shutdown that are lists and dates: which filings apply to you, what order they go in and when each one is due. It's natural to hope for software that will push the right buttons for you. Shutdowns are messier than that. Each state has its own forms and portal, and your tax accounts and licenses sit in separate systems. The human part is knowing which step goes first, which agencies to notify and how to keep everything in sync.

You'll also see this category called business shut down software, wind-down tooling or wind-up admin. When you evaluate a service, the useful question is which parts the software does and which a person does. For startup shutdown assistance, Starcycle pairs wind-down tech with people who live in the process. Software does the plan, the date tracking and the first drafts, and a person on the team reviews and approves every filing before it goes out.

When DIY might still make sense

DIY is most manageable when your LLC is simple: one state, no employees, no sales tax account and only a license or two. A case like that takes patience and a good checklist more than anything else. The IRS checklist, the SBA guide and your state's own forms page cover the whole job. Your only fixed cost is the state fee. Check your state's current forms and fees before you start. Shutdowns in more than one state follow the same steps with more filings, and how long each stage takes depends mostly on state processing.

If you have debt, talk to your lawyer. If you'd like a second pair of eyes on the list, your CPA can confirm which returns apply to you.

The founder-first option to closing your business

Either route ends with the same filings, and the difference is whose desk they sit on while you move on to what's next. Doing it yourself saves the service fee and keeps the tracking with you. Handing it over costs a price quoted upfront and saves you the rabbit holes.

Ending a company is part of the cycle. Treat your shutdown the way you treated your launch: with intent, clarity and care for the people involved, including you.

If you'd like it handled, start with Starcycle's intake. You answer a short set of mostly yes/no questions and get a plan and an upfront quote. We can also make intros to lawyers and accountants.

Frequently asked questions

Does Starcycle close corporations as well as LLCs?

Yes. Starcycle works with U.S. LLCs and corporations, from a single-member LLC that never took outside money to a multi-state Delaware C-corp with investors.

Where can I read reviews of Starcycle?

You can read reviews of Starcycle from founders on its Reviews page.