Dissolution of a Delaware Corporation
To dissolve your Delaware corporation, follow these steps:
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Board Resolution and Shareholder Vote: The board of directors must adopt a resolution to dissolve, and a majority of shareholders must approve it.
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Dissolution Process: Winding up the company’s business involves settling debts, paying taxes, resolving lawsuits, and distributing remaining assets. Appoint a manager to oversee this.
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Legal Compliance and Costs: Ensure you adhere to legal requirements, such as filing a Certificate of Dissolution with the state and paying any outstanding taxes.
Costs and Procedures for Dissolving a Delaware C Corp
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Cost to Dissolve: Filing for a Certificate of Cancelation in DE costs $200 online, with an optional $50 for a field copy of documentation.
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Dissolution Timeline: Once documentation is submitted, the dissolution process typically takes 2-3 weeks in Delaware.
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Fees Involved: Fees for dissolving a business in Delaware include filing fees for various documents, such as a Certificate of Dissolution and Tax Clearance Certificate.
Guidance on Dissolution Procedures
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Legal Assistance: Consider seeking help from an experienced Delaware business lawyer to ensure proper dissolution processes are followed.
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LLC Dissolution: LLCs can dissolve if a 2/3 majority of members vote for it, following the guidelines outlined in the LLC agreement.
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Avoiding Penalties: Properly dissolve your corporation to avoid penalties and future liabilities. Administrative dissolution should be avoided.
Important Considerations in Dissolving a Delaware Corporation
If you are contemplating dissolving a Delaware corporation, ensure that it is a well-considered decision agreed upon by all relevant members of the firm.