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Frequently Asked Questions

What should be done with the business's physical locations during the winding up phase of a Delaware LLC cancellation?

During the winding up phase of a Delaware LLC cancellation, there are several key tasks that need to be addressed regarding the business's physical locations. Firstly, these locations need to be closed. This involves ceasing all operations and informing all relevant parties, such as employees, customers, and suppliers, about the closure. The next step involves settling all business with customers and suppliers. This could include fulfilling any remaining orders, resolving any outstanding issues, and finalizing all payments. The company property, which includes the physical locations, should then be sold or disposed of. This could involve selling the property to another business, leasing it out, or even demolishing it if it's not needed. The proceeds from the sale or disposal of the property can then be used to help discharge or make arrangements for all liabilities, such as loans, taxes, contracts, or lawsuits. It's important to note that Delaware law states that liabilities must be discharged before any members may collect among final assets. This means that any proceeds from the sale of the company's physical locations must first be used to settle any outstanding debts or liabilities.
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