Can I leave my LLC "VOID" in Delaware?
I wasn't aware that I had to pay Franchise Tax in Delaware, whats the worst thing that will happen if I leave the LLC "VOID".
Can I still have a good standing LLC in NY?
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Is the LLC in NY the same as the one in DE, qualified as foreign? Or you're talking about two entirely separate and unrelated entities that you happen to own? – Littleadv 11 years ago
1 Answer
Yes, you can maintain good standing status in New York. However, the worst thing that can happen in Delaware if you don't pay your annual franchise taxes is that (1) there will be a penalty payable when you finally pay your Delaware franchise taxes, (2) reputable investors won't invest in your company because you won't be able to show that it's in good standing in its jurisdiction of formation and (3) at some point it'll be dissolved automatically. You also won't be able to qualify to do business in additional states if needed.
The franchise taxes are just $250 a year, which is a small price to pay compared to the consequences described above.
