Now that the New Year has begun, a question we are hearing quite frequently is, “How can I dissolve my Delaware Company as of 2011?”
Well, you can’t!
To dissolve your company an official document must be filed with the Delaware Division of Corporations and they cannot be back-dated.
The bad news is that the state of Delaware will require the full annual franchise tax to be paid when the document is filed, in other words, you’ll have to pay this year’s franchise tax because the company was in existence for some of 2012. Even a day into the New Year will cost you $250 more in franchise tax than if you had filed on December 31st.
However, there is some good news with the bad. Now that it’s a new year, no matter when you officially dissolve your company, whether it is January or December of 2012, the cost will be the same for any LLC and for all stock corporations with 3,000 shares or less. Perhaps your business could use one more year? Or you could change the name and do something different with it.
If you own or manage a Delaware company, it is very important that you are aware of some of these quirks about the Delaware annual Franchise Tax. As your Delaware registered agent, our specialists answer questions regularly about franchise tax. We provide our clients with the most up-to-date information regarding this maintenance charge and other matters involving compliance with Delaware Corporation Law and Delaware LLC law.
Whether you have a corporation or an LLC, keeping up with this fee along with your annual Registered Agent fee will keep your company in good standing with the State of Delaware for a full year!
At Harvard Business Services, we pride ourselves on our friendly and expert customer support so if you would like more details regarding Franchise Tax, dissolutions or cancellations, please give us a call.