My Delaware corporation was voided, what do i have to do? What are the risks?

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Hello, I started a company that never made it and never had any revenue. However, regardless of revenue one must file a franchise tax. For financial reasons, I couldn't even pay the $125 or so required. It's been two years since i haven't paid and today just to see how much i owed i logged into pay on the DE website but it gave me an error message "* W0006Inactive Corp ", which means corp is voided. Now, we never had employees and i never paid myself so i never had to do payroll taxes. So only thing i owe is the franchise tax. I don't want to reactivate the corp but as a honest person i want to pay up what i owe. Are there any risks? state lawsuits? further penalties upon non-payment? Also, do i have to dissolve the corp?

Attorney Answer

1
Gregory G. JonesBusiness AttorneyGrapevine, TX ·
If you did no business you should have little or no risk. Once you lose your corporate status then you lose any protection of the corporate entity. if you did not conduct business and you did not have employees then there would be little reason to think there would be a claim that would be made against you personally. Franchise taxes are paid typically based upon your income. If you cannot even pay the basic annual fee to maintain a company then just let it go. The fact of the matter is you don't have the money to pay for even the basic fee then frankly there is not much you can do anyway. You might contact the Secretary of State for the state in question and ask them for assistance in closing out any costs and note that the company is out of business and has no funds. If you used a service to set up the company then they probably want their fees for their annual service and they may send your account to a collections agency.
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