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Help With Dissolving LLC

Discussion in 'Business & Tax Advice' started by frankls, May 16, 2010.

  1. frankls

    frankls Newbie

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    Hello,

    About 8 months ago I set up an LLC with the state of Delaware through a US accounting firm ( I'm from New Zealand ). During this time having an LLC has been helpful with setting up CPA accounts, but I really haven't seen the value in continuing. So I have been looking at closing the LLC down. I have been advised by the US accounting firm that to do it I have to pay some annual tax (not personal tax)or something due to the state of Delaware regardless of whether I close it down or not and a $200 dissolution fee. Totaling some $900USD

    Before I pay this, I was just wondering if anyone else has had experience dissolving an LLC.

    Thanks
     
  2. ibekrs1

    ibekrs1 Newbie

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    Those types of fees are typical for the dissolution of LLCs. The first fee is for the minimum tax the LLC would pay to the state tax and the second fee would be paid to Delaware's Secretary of State or whatever department handles their business ventures.

    In California for instance, that first fee would go to the Franchise Tax Board which taxes LLCs based on revenue. In your case, you sound like you had no revenue and that you would pay the minimum tax. The second fee would go to the California Secretary of State for dissolving the LLC as a legal entity.

    Hope that helps.
     
    • Thanks Thanks x 1
  3. tymillz

    tymillz Super Moderator Staff Member Jr. VIP Premium Member

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    Is it possible to sell your LLC to an interested party instead of dissolving it ?
     
  4. chocolatemonkey

    chocolatemonkey Junior Member

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    I'm not trying to be arrogant or put you down or anything like that, but judging by what state they gave you an LLC from, you were dealing with a really shitty firm. Delaware is old news...
     
  5. frankls

    frankls Newbie

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    iberkrs1 - thanks, it does help.

    tymillz - Hey thanks for that, worth considering. Do you know if there's a website or something where I can get info on selling an LLC?

    chocolatemonkey - we're cool man. the firm i was dealing with is no longer on the payroll.
     
  6. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    Put that puppy on craigslist.
     
  7. chocolatemonkey

    chocolatemonkey Junior Member

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    Good call ;)
     
  8. CyberknightTully

    CyberknightTully Junior Member Premium Member

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    If you're finished with the LLC, why even bother shutting it down? Delaware wants a minimum tax that you will have to pay before you can close the LLC OR sell it. Just let it go out of "Good Standing" and it will cycle down to the bottom under thousands of other Delaware corporations and LLCs which have gone out of "Good Standing". Delaware will send you a few nasty letters pleading for money and after while you will forgotten about. Let the LLC die a natrual death if you're not going to use it any more. Happens all the time and Delaware sure as Hell is not going to come after you in NZ for a few hundred bucks.
     
  9. toyo

    toyo BANNED BANNED

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    Just ignore the LLC and move on...