Carmarthenshire County Council says that the order to remove Hafan Tywi care home's registration was made last Thursday at Llanelli Magistrates Court.
Care and Social Services Inspectorate Wales (CSSIW) says that staff at Hafan Tywi care home weren't paid at the end of last month - but praised them for continuing to provide care for residents.
The watchdog says there was no guarantee staff would be paid properly, so it wasn't "sustainable" for the home to stay open.
A private care home in Carmarthenshire has been forced to shut. Hafan Tywi in Ferryside closed after Care and Social Services Inspectorate Wales voiced concerns about the financial viability of the home.