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Richard, Attorney
Category: Business Law
Satisfied Customers: 55711
Experience:  32 years of experience practicing law and a businessman.
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I have an LLC that is registered in Delaware. I no longer

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I have an LLC that is registered in Delaware. I no longer have a need for this entity. It will cost ~$1200 to officially dissolve the entity because of back franchise taxes and filing fees for dissolution. What happens if I don't do anything? i have no plans to ever use the entity again.
Submitted: 7 years ago.
Category: Business Law
Expert:  Richard replied 7 years ago.

Good afternoon. Nothing really happens...eventually if you haven't filed your franchise tax returns, then your Certificate is forfeited. Actually, not filing your formal dissolution can work in your favor...when you dissolve and liquidate, one of the forms that must be signed by all shareholders is a representation that all the liabilities of the corporation have been accounted for....many commentators actually think this opens up shareholders to personal liability for the corporate liability that may arise.



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