Frequently Asked Questions

How should a Delaware LLC settle all business with customers and suppliers?

When an LLC decides to cancel its operations, it must go through a process known as "winding up." This phase is crucial to ensure all loose ends are tied up and no new business is embarked upon. One of the key tasks during the winding up phase of a Delaware LLC cancellation is settling all business with customers and suppliers. This involves closing any outstanding transactions, fulfilling any remaining contractual obligations, and resolving any disputes or issues that may exist. The LLC must also sell or dispose of all company property and make arrangements for all liabilities. This includes discharging or making arrangements for all liabilities, such as loans, taxes, contracts, or lawsuits. Delaware law stipulates that liabilities must be discharged before any members may collect among final assets. This means that any valid contracts for the future, contingent contracts, conditional contracts, or un-matured contractual claims must all be discharged satisfactorily to the liability holder.