We've arrived at the difficult decision of shutting down our company, a Delaware c-corporation. However, we have outstanding franchise tax liabilities for the last fiscal year with the State of Delaware that the company cannot cover (it’s insolvent) and that I rather not pay for personally. Reviewing the requirements for a formal dissolution in 8 Delaware Code §277 (http://delcode.delaware.gov/title8/c001/sc10/index.shtml) it says that Franchise taxes have to be paid by the corporation before the Corporation can be dissolved.
I am assessing whether a formal wind-down (including settling company's tax liability) is the best course of action or whether we could pursue a hands-off approach and allow the Secretary of State to repeal the charter.
Any advice would be greatly appreciated!
