What does it mean for a company to “go void”?
If you have a Delaware LLC or corporation and have neglected to pay your agent or state fee, you may have been told by your registered agent that the company is in danger of “going void.” What does void mean? In the context of Delaware LLCs and corporations, it means that the registered agent “resigned” or, in other words, removed themselves from designation as the agent on record with the state.
What Does It Mean to Go Void?
Resigning as registered agent means that we request the Delaware Secretary of State remove us as the registered agent on record for your company. Once we resign and are removed as registered agent without the company naming a new registered agent, the company will go into forfeited status and no longer be in “good standing” with the State of Delaware. A Delaware company must remain in good standing to enjoy the legal shields when doing business under the name of the entity. A Delaware company must maintain a registered agent with a Delaware address, such as IncNow, to remain in good standing.
A company can also go void voluntarily if the business never got off the ground and the owners simply wish to let its legal status lapse without doing a more complicated wind-down.
Why Do Companies Go Void?
It is good policy to let us know if the company is no longer doing business. Contact us to ask us to resign as registered agent. This is better than simply ignoring franchise tax notices and letting a balance accrue with the state. Once we resign, the company stops accruing franchise tax, late fees and interest. Avoiding these taxes and fees is important should you wish to renew/revive the company at a later date because late fees and franchise tax must be paid for the company to be renewed/revived.
As long as the name has not been taken by another party, you can renew/revive the company. Contact us and we’ll help you to appoint a registered agent, file a certificate for renewal and revival and pay any unpaid taxes that the company owes the State of Delaware. We would be happy to help you through this process.
