Withdrawing your Delaware LLC from the State of California

californiaThe year 2020 was a rough year for us all due to the unprecedented COVID-19 Pandemic.  This deadly virus popped up out of nowhere and has ravaged communities all across the United States and all over the world.  For businesses in general, especially newly established businesses, it has been particularly difficult.  With so many things up in the air and with so much uncertainty about the future, many entrepreneurs will have to close their doors for good. 

The State of California seems to have been hit as hard as any during the pandemic, and we’ve noticed a mass exodus of businesses leaving the state as many clients are no longer planning to continue their business operations there.  Many of these businesses are Delaware LLCs that have qualified as foreign LLCs doing business in the State of California.  Ok, so what’s the next step?  If you’ve registered your Delaware LLC as a foreign LLC with the California Secretary of State and this pertains to you, we can help you with this part of the your move, and get you out of California. 

We can provide assistance with the preparation and the filing of the California Certificate of Cancellation (Form LLC-4/7) with the California Secretary of State in a timely manner to essentially undo the foreign registration.  We’ll just need to gather a few basic details for the LLC to file the paperwork, for example:

-Enter the name of the LLC exactly as it appears on file with the California Secretary of State, including the entity ending (ex: “Jones & Company, LLC” or “Smith Construction, a Limited Liability Company”).

-Enter the 12-digit file number issued to the LLC by the California Secretary of State at the time of registration.

-For registered foreign LLCs: This Form LLC-4/7 must be signed by a person authorized to do so under the laws of the foreign jurisdiction.

-Name and Signature of Authorized Signatory

**(LLC-4/7 Instructions (REV 11/2020) - 2020 California Secretary of State - bizfile.sos.ca.gov

After we have gathered all of the required information, we’ll prepare and email the form for signature.  Once executed and returned, we’ll submit the filing to the California Secretary of State to formally unwind your California registration. 

If you like our help registering or withdrawing your Delaware LLC or corporation from the State of California we can help.  Please give us a call today at 800-345-2677 ext. 6133 or email us at andrew@delawareinc.com

*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.

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There is 1 comment left for Withdrawing your Delaware LLC from the State of California

Ronny Widjaja said: Thursday, May 20, 2021

Hi, Last year we establish a company in USA under the name Building quarter inc. Until today we have not hire anybody, have zero sales and expenses, also zero assets. In the past couple months we receive an email to report annual tax. However we do not understand to proceed. We try to set up an appointment as suggested by the email link but no body attended to the meeting on scheduled time chosen. Can anyone help us to clarify and guide us what to do next? Thank you.

HBS Staff replied: Thursday, May 20, 2021

Thank you for reading our blog. We are happy to help assist you with your question. We don’t have a calendar for appointment. We offer several ways in which you can contact us via phone, live chat, email or Skype.

To answer your question every company that incorporates here in the State of Delaware whether they do any business or not are required to pay the annual Franchise Tax of $300 due every year on June 1. This is what you pay to the State of Delaware for the right or privilege to own a Delaware company.

If you don’t pay on time the company receives a $200 late penalty plus interest.

We do offer a filing service to assist you in paying the Franchise Tax. Our filing fee is $49. So it would be a total of $349 to have us assist with the filing.

This can all be done via our website and no other information is required www.delawareinc.com/payft

If you have any additional questions please contact our Franchise Tax team at payments@delawareinc.com

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