How to Dissolve a Delaware LLC
To dissolve a Delaware LLC, you need to file a Certificate of Dissolution with the Delaware Secretary of State. The process typically takes 10-15 business days.
Steps to Cancel a Delaware LLC:
- Review operating agreement
- Get member consent to dissolve
- Follow any operating agreement rules
- File certificate of cancellation
Winding Up Process
Dissolution is one part of the “winding up” process. There are things to do before and after getting approval from the Secretary of State.
Conclusion
Dissolving a Limited Liability Company (LLC) in Delaware is a process that involves several important steps to ensure that your business entity is properly terminated. This blog post will guide you through the steps to dissolve an LLC in Delaware.
Cost of Dissolving a Delaware LLC
There are 3 steps to closing a Delaware LLC: Dissolution, Winding Up, and filing a Certificate of Cancellation. Next, wind up LLC affairs: Pay creditors, settle lawsuits, pay taxes, and distribute remaining assets. Members must vote to dissolve an LLC. Check your LLC agreement for details. Two-thirds of members must vote in favor of dissolution. Record vote in meeting minutes. File Certificate of Cancellation and Cover Letter with state ($200 fee). Can file by mail or online. LLCs incorporate in Delaware for favorable state laws, not location. Most LLCs don’t operate in Delaware. Failure to pay franchise tax leads to penalties and interest. Eventually state may void LLC status. To liquidate an LLC, sell assets and distribute proceeds to members. Can also dissolve LLC and distribute assets. Or convert LLC to another type of business entity. Must fulfill financial obligations before liquidating a company with debts. Or bankruptcy may be better option.