Frequently Asked Questions

What are the steps for canceling a Delaware LLC?

Canceling a Delaware LLC involves several steps. Firstly, the LLC agreement usually contains instructions for cancellation. The initial step is to inform the board members about a meeting regarding dissolution. A vote is held among the board members to see if the majority requirements for agreeing to dissolution are met. Delaware law also allows a vote bypass in special circumstances, if members owning more than two-thirds of the company's shares or interests affirm their consent for dissolution. Formal minutes of the final decision should be kept. After the final vote to cancel, the LLC will persist in existence until all final business is handled, known as the winding up phase. This includes closing the business's physical locations, settling all business with customers and suppliers, selling or disposing of all company property, discharging or making arrangements for all liabilities, continued prosecution and defense of current lawsuits, distributing final assets among the LLC's members, and closing the LLC's bank account.