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Say you set up a Delaware LLC, but due to unforeseen circumstances, you end up not needing it at all.

Can you simply do nothing and just ignore unpaid franchise tax, closing fees etc - or will that become a problem later to you (as a private person)?

Does it make a difference if you are a US citizen or not?

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It may eventually become a problem, if the State decides to enforce it. It is basically an unpaid tax liability, and you cannot hide behind the limited liability since you're the principal making the decision.

Just close it properly and be done with it.

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Are you sure the LLC has no commercial value? If you can find somewhere to list it for sale you might be able to recover some cash from the name.

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  • why on earth would someone buy a delinquent LLC? – littleadv Jan 29 '14 at 1:11
  • Why do people buy twitter handles? We do not know the name which he operates under and it may or may not be something desirable. I've learned never to underestimate the extent someone with more money than brains will go just to get what they want. – Dopeybob435 Jan 29 '14 at 14:57

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