As we all know in the business world, as much as we (and you) want your new business to succeed, not all new ventures will work out. Approximately four out of 10 new businesses will wind things down within the first few years. Whatever the situation may be, it may be time to cut your losses and close your LLC or corporation.
A number of clients will plan to close their company based on the Delaware franchise tax. The Delaware franchise tax is due on or before March 1 of each year for Delaware corporations and on or before June 1 of each year for Delaware LLCs. When you pay the franchise tax, you’re actually paying for the previous year—the franchise tax paid in 2014 was for the 2013 year, 2013 for 2012, and so on. Delaware franchise taxes are not pro-rated, so your entity will owe the franchise tax fees for the whole year, even if your company is active for just one day in 2015. By filing your cancellation or dissolution by Dec. 31, 2014, you’ll avoid having to pay next year's franchise tax.
After payment is received, Harvard Business Services will prepare a Certificate of Cancellation (for an LLC) or Certificate of Dissolution (for a corporation) for signature, and forward it to you via fax or email. To expedite the process, Delaware does allow for a conformed signature, which allows you to simply type "/s/ your name" in the signature line. Once executed,you just need to return the Certificate of Cancellation/Dissolution document by fax or email to Harvard Business Services. Upon receipt, we will file the certificate with the state of Delaware. The state typically takes three to five business days to return the receipt of filing. As soon as the approved cancellation/dissolution document is available, we will forward it to you for your records.
Give us a call today at 1-800-345-2677 to start the cancellation or dissolution process for your Delaware LLC or corporation. We’re here to help!
Photo Attribution: Pete Jelliffe
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.
There is 1 comment left for Save By Closing Your Delaware LLC or Corporation NowMichael Grillis said: Thursday, December 15, 2016
I would like to close my Grillis medical office building , LLC.Could you send me forms for this or let me know what I need to do?I would like to close by Dec. 31, 2016. ThanksHBS Staff replied: Tuesday, December 20, 2016
Mr. Grillis, your best bet, in terms of speed, would be to give us a call at 1-800-345-2677, Ext. 6911. We can help you properly close your LLC by the end of the year. You can also Live Chat with us via our homepage at www.delawareinc.com.