Unfortunately, companies sometimes run their course and no longer yield any profit for their owners.
When that happens, you need to take care of a few important steps.
When your company was originally filed, a Certificate of Formation/Certificate of Incorporation was submitted in order to create the new entity. When it is time to close a company, a document is filed with the Delaware Division of Corporations; this document is called a Certificate of Dissolution for corporations, and a Certificate of Cancellation for LLCs.
How can we help you close your company?
We can make the process of closing your company as simple as possible. All you need to do is call us at 800-345-2677 or email us and we'll take it from there. We can prepare and file all the necessary documentation for you.
Before we can proceed with the filing of the documents, however, all your company's Franchise Taxes must be paid, including the current year. We can prepare a Certificate of Dissolution or Certificate of Cancellation for your signature and forward it to you via fax or email.
It must be signed by the authorized person of the LLC or an appropriate officer of the corporation. Once signed, simply return it to us by fax or email, and we will file the certificate with the state of Delaware within 24 hours.
The state typically takes 3 to 5 business days to return the receipt of filing. As soon as the approved document is available, we will forward it to you for your records. We strongly suggest clients speak with their accountant/tax professional before proceeding with a dissolution or cancellation of a company. Once the filing is approved, it is difficult to undo.
If your company has a bank account, you should close the account before filing the Certificate of Dissolution/Cancellation. If you have filed taxes with the IRS, you will need to file a closing tax return after filing the Certificate of Dissolution/Cancellation, and attach a certified copy of the certificate to your final tax return.
Please call us at 800-345-2677 or email us for more information on how to close a company.
There is 1 comment left for How to Close a Company | Harvard Business Services, IncRahul said: Wednesday, November 1, 2017
Dear team, Can you tell me the process of cancelling a firm, I have an LLC register in Delaware. last year oct 2016? Do I need to pay tax if I have done zero business till now? Let me know the process and fee.HBS Staff replied: Thursday, November 2, 2017
Here is detailed information on how to cancel an LLC: https://www.delawareinc.com/blog/business-dissolution-two-ways-to-go-about-it/
Yes, the Franchise Tax must be paid, regardless of how much or how little business has been done with the LLC. Feel free to call us if you have additional questions.