how to close a llc company in delaware [Expert Review]

Last updated : Sept 22, 2022

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hello and welcome to our webinar today this is closing the Delaware LLC or corporation I am Michael cutter with Harvard Business Services and I'm joined by Michael Bell the president of the company who will be presenting to you in just a minute a couple of things as usual to go over here at the top of the broadcast first of all we are recording as we always do so the session that you see today will be available to you to review if you miss anything or just want to go back and hear it again you'll be getting that in an email tomorrow probably around the same time of day and that will be accompanied by a pdf version of the slides that you show you so you'll have two different ways of viewing the information and should be enough to help you review anything that you might have missed the first time in addition to that the presentation today should be fairly quick I think we'll probably need about 20 or 30 minutes and then we'll have some time for your questions at the end so any questions that you think of along the way that you need clarification on just chat them in using the chat feature right in the webinar and some of them who might be able to answer on the fly and the others that we will save until the end and make sure we get everything answered for you as best we can and of course we're always available after the webinar to answer questions and as well so those are the main things let's just jump into a quick little bit of information about us we're Harvard Business Services were founded in 1981 in Wilmington Delaware by Rick Bell who's pictured on the left side as I show you and we're a family owned and operated company myself was going to be presenting in just a moment was named the president of the company just almost a year ago this past January we are now headquartered in Lewes Delaware right on the coast and we have formed over a hundred and eighty thousand companies and we have over 80,000 current clients worldwide as oh we are always ready long and able to help people from all over the world with their Delaware companies we are a Delaware registered agent information specialists very customer focused company we offer free lifetime support low prices and friendly staff these last two points are important we are not attorney that were not accountants so we cannot offer you legal or accounting advice and anything you hear in this webinar should not be considered legal or accounting advice and we have no affiliation with Harvard University whatsoever just a completely different entity from them so with that we can jump into the webinar I'm going to turn things over to Mike and like I said if you have any questions please feel free to chat them in as we go okay great thank you Michael for the introduction as Michael said my name is Mike Bell I'm the president of Harvard Business Services I've been working in the company now for almost 11 years but in layman's terms I've been working in it my whole life so this is a great topic for this time of year because there are a lot of people that are looking to close their books and things down before the end of the year so this will help cover everything you need to know about properly closing your company down here in the state of Delaware through either utilizing our services or directly through the state of Delaware whichever you prefer but hopefully it answers all your questions and if you do have any questions in the meantime while I'm presenting please ask them and I'll try to get to them as I'm presenting a where I'll get to them at the very end so I this is not always something we'd like to hear but we do know that you know people do have to close their company for one reason or another so regardless of whether the closure was planned or unplanned it's important to be aware of the correct procedures I'm in order to protect the company and its stakeholders from extra expenses liability and conflict so that's the main purpose of this webinar today and these are the things that we'll be covering we're going to cover what to consider before you close the company procedures for different entity types filing deadlines and franchise tax implications using Harvard to close your company with state of Delaware and an alternative to a formal closing so let's jump right into it here's what not to do a lot of people just want to call us via phone and say my company is closed okay well you just stating that your company is closed does not formally close your company with either Harvard Business Services or with the state of Delaware we will send you the proper options if you do call us and state this information we do not go based upon word of mouth that your company is closed you have to take up a proper way of going about it to either formally close your company work to resign as a registered agent another thing that people like to do is they contact us via their paperwork or they say to us that they file the proper documentation with the state of Delaware to close company but we never receive or see the filing reflected in the state's database so we cannot assume your company is actually closed either with Harvard Business Services or with the state of Delaware so it is very important to take the proper protocol to make sure that your company is closed down in one of these two ways okay so things you want to think about before closing your company if you have an LLC operating in Granite or corporation bylaws which every company should have a set of bylaws for operating agreement on file at all times internally with the company it would it's going to state specifically how your Delaware company should be closed including how many boats you need to close the company how to handle any updated debt how to liquidate assets how to notify the appropriate parties involved if you do not have this information in incorporated into your operating agreement or corporation bylaws you will I would suggest you seeking the assistance of an attorney to make sure that all of these things are incorporated into you either one of these agreements or firewalls that way if there is ever a conflict people will know properly how to go about closing the company you're also going to want to speak to your attorney in your accountant to see if there if your company needs to file a final federal or state tax return evaluate any unresolved contracts loans and obligations and to close your business bank accounts and distributions of funds that may be left over to any of the members or shareholders of the company so those are a great set of points to remember when before you decide to close your company all right so I as I stated before you do need certain voting in different companies so for an LLC to initiate the company to close within the company in one of two ways either you need an animus or majority vote so the ownership must either vote unanimously to cancel the LLC or the LLC's operating agreement states that a particular percentage of LLC members can be an agreement to cancel the LLC a United unanimous vote is not needed you can vote by two-thirds of ownership insures so the Delaware LLC law allows the LLC memb

Thanks for your comment Sima Looby, have a nice day.
- Darin Alrod, Staff Member

Thanks for this interesting article

Thanks Unazo1 your participation is very much appreciated
- Darin Alrod

About the author

Darin Alrod

I've studied ecology at Snow College in Ephraim and I am an expert in conservation psychology. I usually feel full. My previous job was horticulturist (vineyard) I held this position for 30 years, I love talking about crystals and warli art. Huge fan of Peter Thiel I practice table tennis and collect film memorabilia.