Although closing a business is never an easy choice, there are instances when it is the best one for the owner. There are a few procedures you must take as a business owner who is considering closing your Delaware corporation in order to secure a quick and lawful closure of your enterprise.
Step 1: Verify That All Taxes Have Been Paid In Delaware, paying all taxes is the first step in shutting a business. This includes any unpaid Delaware franchise taxes as well as any state and federal taxes. Before your firm can be dissolved, all taxes must be fully paid.
Step Two: Submit Articles of Dissolution Articles of Dissolution must then be submitted to the Delaware Secretary of State. The name of your company, the dissolution date, and the signature of an authorized individual must all be included in this document. The filing fee for this document is $200.
Step 3: Inform Creditors, Shareholders, and Additional Parties You must inform your company’s shareholders, creditors, and other stakeholders that it is closing. This also entails alerting your clients and staff. Additionally, you need to break any leases or contracts your company has signed.
Step 4: Close all company accounts and revoke all business licenses and permits All business accounts, including credit cards and bank accounts, must be closed. Additionally, you need to revoke any licenses and permits that your company may have. This covers registrations, licenses, and permits for businesses.
What Is the Time Frame for Dissolving a Delaware LLC? The complexity of your company and how quickly you can complete the required requirements will determine how long it takes to dissolve a Delaware LLC. The procedure to dissolve a Delaware LLC typically takes two to three weeks to complete.
The $200 filing fee for the Articles of Dissolution is included in the price of business dissolution in Delaware. Additionally, there can be charges for account closure, license and permit cancellation, and other costs related to the closure of your business. If I Don’t Pay the Delaware Franchise Tax, What Happens?
Your company could be suspended or even forfeited if you fail to pay your Delaware franchise tax. Your company name may be forfeited as a result, and you would have to spend more money to get it back.
You cannot just stop doing business with an LLC if you are a member. To terminate the business or transfer your ownership interest, you must adhere to the procedures stated in the LLC’s operating agreement and Delaware law. Legal and financial repercussions may occur from failing to follow this procedure.
In conclusion, it takes meticulous preparation and execution to close a business in Delaware. The above-mentioned methods can help you achieve a quick and legal closure of your company. Don’t forget to close all business accounts, revoke licenses and permits, file Articles of Dissolution, notify creditors and other parties, and pay all taxes and filing fees.