Manage Your Business
Are you winding-down the operations of your company? Then the dissolution is the procedure that you must start.
If you are to wind-down the operations of your corporation, then the dissolution is the procedure that you must start. If you wish to dissolve your Delaware Corporation formally, a Certificate of Dissolution must be prepared and filed.
As for LLCs, a Certificate of Cancellation needs to be filed to terminate an LLC.
But why should you go ahead with these formal procedures? Why not just leave the company as it is?
• This is a legal requirement by the State
• To avoid fees and taxes
• To put creditors on notice
By dissolving, the company’s responsibility for future annual Franchise Tax payments will also end. Company assets must be distributed among the owners based on the percentage of ownership complying with state law.
Please do not forget to notify appropriate federal, state and local authorities that your company will be closing.
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If you are in need of additional copies of a Certificate of Dissolution from the State, we can help you getting certified copies!
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• The stockholders/members of the company must approve of the dissolution/cancellation.
• All taxes, fees and annual reports must be up to date and filed with the State. All due Franchise Taxes, including any late penalties and interest, must be paid before the company can be dissolved.