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What happens if I don't dissolve my LLC in Delaware?

If you do not legally and officially cancel your LLC or dissolve your corporation, your company will continue to be held responsible for the annual Delaware Franchise Tax Fee as well as your annual Registered Agent Fee until either the Registered Agent resigns or until the State of Delaware voids the company.

What is the difference between LLC dissolution and cancellation?

Dissolution, also called winding up, is a process that members of an LLC will go through in preparation to cancel with the secretary of state and terminate the existence of the LLC. Cancellation is on the secretary of state's side, which terminates the rights, privileges, and powers of an LLC.

What happens if I don't dissolve my LLC in Delaware?

If you do not legally and officially cancel your LLC or dissolve your corporation, your company will continue to be held responsible for the annual Delaware Franchise Tax Fee as well as your annual Registered Agent Fee until either the Registered Agent resigns or until the State of Delaware voids the company.

What is required to dissolve an LLC in Delaware?

To dissolve your Delaware LLC, you provide the completed Certificate of Cancellation of a Limited Liability Company form to the Department of State by mail, fax or in person, along with the filing fee.

How long does it take to dissolve a Delaware LLC?

Your filing usually will be processed in 2-3 weeks. Various forms of expedited service are available for additional fees. A basic certificate of cancellation form is available for download from the SOS website. Be aware that your business name will become available for use by others after cancellation.

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What is a certificate of cancellation Delaware?

The Certificate of Cancellation is a document that is filed with the state of Delaware in order to officially cancel the LLC. The Certificate of Cancellation should only be filed after your LLC has \u201cwound down\u201d its affairs completely. IncNow can help file the Certificate of Cancellation.

Is it easy to close a corporation?

Closing a corporation and winding up business operations is known as "dissolution," and the process requires several steps. Often, the aid of a lawyer or the assistance of a tax professional is helpful. Certainly, you may informally dissolve a company by ceasing all business action.

What happens when you dissolve a corporation?

After a company is dissolved, it must liquidate its assets. Liquidation refers to the process of sale or auction of the company's non-cash assets. Note that only those assets your company owns can be liquidated. Thus, you can't liquidate assets that are used as collateral for loans.

How do I dissolve a corporation in Delaware?

Delaware's General Corporation Law ("GCL") provides for voluntary dissolution through a stockholder vote at a stockholder meeting. Before the vote, your board of directors must adopt a resolution to dissolve, submit it to the stockholders, and call the stockholder meeting to vote on the matter.

What are the steps involved in dissolving a corporation?

6 Steps to Dissolve a Corporation #1 \u2013 Seek Approval from the Board of Directors and Shareholders. First, hold a meeting with the board of directors. ... #2 \u2013 File Articles of Dissolution. ... #3 \u2013 Finalize Taxes. ... #4 \u2013 Notify Creditors. ... #5 \u2013 Liquidate and Distribute Assets. ... #6 \u2013 Wrap Up Operations.

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What happens if I don't dissolve my LLC in Delaware?

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