Teera Price

This is an inside look into my mid career left turn from a cushy tech job to entrepreneurship. It's been called "How I Built This live... but without the known glorious ending." I share the details of how I actually do this and what happens when we launch.

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Closing SnapFile: How I Dissolved Two LLCs and What It Cost

Closing SnapFile: How I Dissolved Two LLCs and What It Cost

SEPTEMBER 2, 2025|LESSONS LEARNED

When you start a business, everything feels like a big exciting step forward. You form an LLC, set up bank accounts, spin up email, and launch a website. Closing a business feels like adding insult to injury. It's not glamorous, and it's not quick.

I recently dissolved two LLCs (one in Delaware which we naively formed through Stripe Atlas and literally never used) and one in Nevada (where SnapFile "lived"). I want to share how I figured out what needed to be done, the steps I actually took, what it cost, and most importantly why I bothered dissolving them at all. As usual, I hope others can learn from my mistakes!

Why Dissolve Instead of Just Walking Away?

A surprising number of business owners never formally close their companies. They simply stop operating and assume that's the end of it. After going through this process, I totally get why that seems like the best (in)action. The problem is, the state doesn't forget about you.

As long as an LLC is "alive," it generates obligations: franchise taxes, annual reports, registered agent fees, business licenses, etc. Even with $0 in revenue, the costs and administrative burden keep coming.

For example:

  • Delaware requires a $300 minimum franchise tax and $50 annual report every year.
  • Nevada requires an annual list and state business license renewal (~$200).
  • Massachusetts, where I had a foreign entity registration, also requires an annual report fee.

Letting an LLC sit and rot means those fees pile up. Eventually the state will administratively dissolve the company, usually with penalties and backed expenses attached. It can also leave you exposed legally if anything lingers (like contracts, leases, or tax obligations).

For me, dissolving was about closing the loop, avoiding ongoing costs, and never having to think about "what's the NV annual report filing deadline" again.

Step 1: How the Eff to Close Your Business

At first, I thought Stripe Atlas would make it easy. They offered a $99 "dissolution service," but it was just a checklist. Alas, no filings included.

So I turned to my favorite answer to everything: AI. I used Manus to create a checklist of what I needed to do. Actually, I told Manus to do it and it told me "I can't, here's a checklist": dissolving the Delaware and Nevada LLCs, canceling my DBAs, and ending the Massachusetts foreign entity registration.

I double-checked everything with ChatGPT and built a Google Doc to track tasks. That document became my never‑ending to‑do list.

The endless to do list

Endless to do list

Step 2: How I Actually Did It

The first milestone was filing final taxes. Because the IRS forms weren't updated for e‑filing yet, and no software applications could support 2025 yet, I had to complete them by hand. Like with paper.

From there, I worked through:

  • Delaware: Filed the annual report, paid the $300 franchise tax and penalty fees for not knowing I had to pay franchise tax, then submitted the dissolution paperwork.
  • Nevada: Renewed the annual list and business license, then filed dissolution.
  • Massachusetts: Filed a withdrawal of my foreign entity registration.
  • Registered agents: Terminated service in both Delaware and Nevada.
  • DBAs: Canceled fictitious business names in the counties where I had filed them.
  • Banking: Closed checking accounts and credit cards tied to the LLCs.
  • Digital tools: Archived SnapFile's G Suite, email, website, and domains (using Google Takeout to back up records first).

Each step was its own little unique nightmare. Delaware wouldn't allow dissolution until the franchise tax was paid, Nevada required renewal before cancellation, and Massachusetts needed a separate withdrawal filing.

Step 3: The Costs

Here's what it added up to:

Delaware LLC
  • $300 franchise tax (minimum)
  • A couple hundred dollars in penalties
  • $50 annual report filing
  • $200+ dissolution filing fee
Nevada LLC
  • $200 annual list and business license renewal (required before dissolution)
  • $100 dissolution filing fee
Massachusetts Foreign Entity Filing
  • $125 withdrawal filing fee
DBAs / FBN Cancellations
  • $40–$60 each, depending on the county
Miscellaneous
  • Postage, notarization, copies, registered mail: ~$100

Total: Roughly $1500+ across both LLCs and related filings. That's with me handling everything myself. Outsourcing to lawyers or accountants would have easily multiplied the cost.

Step 4: Lessons for Next Time

  • Keep it simple: I don't need multiple LLCs to test ideas. One California LLC with DBAs is enough until something proves it's worth scaling.
  • Complexity compounds: Every entity creates recurring obligations, even if it's inactive.
  • AI is a multiplier: Without it, I would have spent months piecing together the requirements by googling, reading blogs, and calling lawyer friends with questions (or spent thousands more on legal help). Instead, I had a clear roadmap.
  • Closure matters: This was a painful process. I set aside 1–2 hours per day for a couple of weeks to do the tasks. Each time I checked off a step, I literally rewarded myself with a cookie. When it was finally over, I had a big cookie and delighted in never having to think about these businesses again.

Final Thought

Shutting down SnapFile wasn't what I hoped for when I launched, but dissolving gave me a sense of closure and freed me to focus on what's next. If you're in the same position, my advice is simple: don't start businesses willy‑nilly and don't just walk away. Keep your business structure as simple as possible. If your venture goes the way mine did, dissolve your company properly, save yourself future headaches, and learn from the process.