To avoid any future legal obligations, you should dissolve your LLC if you are no longer doing business with it. You will still need to submit annual reports and pay franchise taxes to the state of Delaware if you choose not to disband your LLC. Penalties and interest charges may be assessed for failure to comply.
The filing charge for the Certificate of Cancellation is $200, which is the cost to dissolve an LLC in Delaware. At the time of filing, this charge is due. Furthermore, you must settle any unpaid fines or taxes with the state before submitting a petition for dissolution.
Depending on the kind of corporate entity, Delaware has different costs for business dissolution. For instance, while dissolving a partnership only costs $200, dissolving a corporation costs $204. The fact that these fees are in addition to any taxes or other payments due to the state must be noted.
A Certificate of Cancellation must be submitted to the Delaware Division of Corporations in order to dissolve an entity in Delaware. You must fill out this form with information about your company, including the name and address of the LLC, its founding date, and the grounds for dissolution. Delaware LLCs: Do They Pay Taxes?
Yes, the state of Delaware requires LLCs to pay a franchise tax each year. The number of authorized shares and their par value are used to calculate the franchise tax. The annual tax is now set at $300 minimum, however it may go higher depending on the number of shares and par value.
In conclusion, Delaware requires filing documentation and a $200 charge to dissolve an LLC. In order to avoid legal obligations and ongoing costs, it is crucial to dissolve your LLC if you stop doing business. Before submitting a petition for dissolution, you must settle any unpaid state taxes or fees. Delaware LLCs are also obligated to pay the state an annual franchise tax.