How to Formally Dissolve a Delaware C Corp

By Nichole Hoskins

Many corporations choose to incorporate in Delaware because of the state's business-friendly tax structure, corporations bureau and processes. There may come a time when a corporation needs to wind down its business. Delaware also has a rather straightforward procedure for formal dissolution of a C corporation.

Preparations

Step 1

Hold a vote on the dissolution of the corporation. The stockholders or board of directors of the organization must authorize its dissolution. The date the vote is taken must be recorded on the Certificate of Dissolution that you will have to file with the state..

Step 2

Pay any outstanding taxes. Before the Certificate of Dissolution will be accepted for filing, outstanding taxes due to the state must be paid.

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Step 3

File all required annual franchise tax reports. Contact the Franchise Tax Section of the Delaware Division of Corporations prior to submitting the Certificate of dissolution to determine if there are any franchise tax reports due.

Dissolving the Corporation

Step 1

Create the State of Delaware Certificate of Dissolution for your organization. The Delaware Division of Corporations provides a Certificate of Dissolution form that can be used as a template to create a document that is specific to your organization. The form is available online at the State of Delaware website. This website also includes the instructions, which explain what must be included in the certificate for it to be accepted for filing.

Step 2

Submit the completed Certificate of Dissolution with the appropriate filing fee. Include a cover letter with the certificate that contains contact information for the person who can answer questions about the organization or the form if necessary.

Step 3

File the certificate, fee and letter with the Delaware Division of Corporations, 401 Federal Street., Suite #4, Dover, DE 19901.

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Terminating a New York S Corp

References

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It is not necessary to do business in a state to incorporate in that state; all you need is a registered agent with an in-state street address. Delaware is a popular state for incorporation because its state government is business-friendly and accessible. When you form a corporation, it automatically has C corporation status, meaning it is taxed under Subchapter C of the Internal Revenue Code. Although the IRS taxes the income of C corporations, the state of Delaware does not.

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