Delaware LLC Annual Fee

It is important to consider whether you will need to register to transact business in another state to the one you form your company in. Corporations and LLCs are considered “foreign” in every state besides the one that they register their company in. If you plan to do most of your business in other states, you should consider the fees of those states to make sure you are Delaware LLC Annual Report: Everything You Need to Know choosing the right place to incorporate. The first Delaware LLC was formed on October 1, 1993, when the Delaware Limited Liability Company Act first made the LLC a legitimate business entity. Right now about two-thirds of all of the companies that are formed in Delaware are LLCs. In 2006, it reached 145,630, and in 2014, the number of Delaware LLCs grew to 168,966.

  • These services will require a fee of $1,000 per document and $500 per document, respectively.
  • He has partnered with several LLCs and Registered Agent services, helping clients achieve their desired results, after acquiring a degree in business management and various certifications.
  • Some states require the filing of the report only once in ten years.
  • To get a Delaware business license, you can create a “One Stop” account and complete the entire process online.
  • Not filing your company’s LLC Annual Franchise Tax in Delaware will result in the administrative dissolution of your company by the State of Delaware.
  • Once you’ve done so, you can check that off your “to-do” list for another year and get back to the business of running your business.

Therefore when filing an annual report listing directors, every active business must have at least one director. Checking a box listing “no directors” is a misrepresentation (usually through honest ignorance albeit well-intentioned). If you’re interested in incorporating your business in Delaware or need help filing a Delaware annual report, don’t hesitate to reach to one of UpCounsel’s knowledgeable lawyers for help. Delaware allows for S-corporations or S-corps to operate and pay taxes. This calculation method is based upon issued shares and the total gross assets of the corporation. You can request that it be calculated for you, or do it yourself.

Other Transactions You Can Do Under the Annual Franchise Tax and Change Services

The Delaware LLC fiscal year is used by businesses whose primary season for business operations do not fall neatly within a calendar year. The franchise tax and annual due date vary according to how the business is classified. It is also important to note that once this Public Information Report is filed with the Comptroller of Public Accounts, there is no need for additional filing with the secretary of state.

  • If you have changed your main business address or had new business appointments of managers or members, the annual public information report notifies the State Government Entities about it.
  • However, the state does require LLCs to pay an annual tax (see below).
  • While Alaska is best known for its cold weather and thousands of miles of uninhabitable terrain, it’s also a top location to form a business.
  • To help you get a head start on meeting Delaware’s annual report due date and paying your franchise tax, we’ve put together this easy-to-follow guide to navigate you through the filing process.
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  • Interest at 1.5% per month is applied to any unpaid tax balance.

This will let you know if your proposed name is available and not already being used by another business. Determining and meeting your business’s annual filing date is crucial in order to remain compliant with the Secretary of State. For example, suppose the state needs to contact your company for some legal matters. In that case, there should be an authorized representative where they can send legal documents.

How Much Is the Annual Report Filing Fee in Delaware?

One of the key tasks is paying and reporting business taxes to the state. There is a state penalty of $125 if a domestic corporation has not filed the annual report and franchise tax. In addition, the state also will charge a 1.5 percent interest rate on the funds that are due. That includes two state filing fees, registered agents in both states, two annual reporting fees, and more. The yearly report deadline for foreign corporations is June 30, and failure to file by this date will incur a $125 late filing fee.

Delaware LLC Annual Report: Everything You Need to Know

Par value is a set amount below which the stock cannot be sold–it has nothing to do with the stock’s actual value. See Nolo’s article “What is Par Value Stock.” If the shares are issued with no par value, “no par value” should be printed on the stock certificates. The preprinted articles form on the Secretary of State’s website also includes a line to list the par value of the corporate shares. However, use of par value is optional in Delaware (see “Issue Stock” below). If you want to issue shares without par value, cross out the line “a par value of $___ per share” on the form and add “no par value.”