Milton Business Dissolution or Transfer Attorneys

Supporting Business Owners Across Sussex County

Has the time come for you to dissolve your business or transfer it to another party? Ensure that this legal process is completed per Delaware state law so that you are not vulnerable to future problems or concerns. At Adkins Law Firm, we work with businesspeople all over Sussex County and the surrounding areas to help them achieve their business goals and to ensure that all business matters are resolved as efficiently as possible under the letter of the law.

Understanding Business Dissolution and Transfer in Delaware

Dissolution of a business or transferring it to others is a legal issue that must be addressed according to state rules. Whether your business is an LLC (limited liability company) or some other form of corporate entity, you should turn to a legal professional to ensure that the process is completed correctly and in a timely manner to avoid possible future penalties. For example, if an LLC is not dissolved according to state rules, you and other members of the company may be held liable for monies owed to creditors or taxing bureaus.

Like all states, Delaware has a Limited Liability Corporation Act that outlines all the legal requirements for business:

• Set-up
• Operation
• Dissolution
• Transfer

The rules under this Act will cover what happens to debt or tax consequences when a business is dissolved or transferred. You may also have questions about what happens with the existing inventory of such a company in light of dissolution or transfer. All of these matters can be handled efficiently when you bring them to our firm. Acting as your Milton business lawyers, we can see that your dissolution or transfer will be addressed according to all pertinent rules and requirements.

Steps to Successfully Close an LLC in Delaware

Closing an LLC in Delaware involves several steps according to the state's Division of Corporations:

File a Certificate of Cancellation: The first step is to file a Certificate of Cancellation with the Delaware Division of Corporations. This document officially cancels your LLC's existence. There is a $200 fee to file this certificate.

Pay all outstanding taxes and fees: Before you can close your LLC, you must settle any outstanding taxes or fees with the Delaware Division of Revenue and the Division of Unemployment Insurance. Failure to do so could result in penalties.

Notify creditors and settle debts: You need to notify all creditors of your intent to dissolve the LLC and settle any outstanding debts. If there are remaining assets after settling debts, they should be distributed among the LLC's members according to the LLC agreement.

Notify the IRS: After completing the Delaware LLC cancellation process, you may need to write a letter to the IRS, requesting closure of your LLC's EIN Number.

Close out business accounts: Any business bank accounts or credit lines should be closed out.

Remember, each LLC might have different requirements based on its operating agreement, so it's always advisable to consult with a legal professional during this process.