When starting a US business venture, there are numerous things to take into account – one of them being the Delaware LLC fee.
Delaware requires all LLCs to pay a tax of $300 by June 1 each year. Failure to do so will result in an additional $200 late payment penalty and 1.5% per month on unpaid taxes.
Certificate of Formation
The Certificate of Formation is an essential document for your Delaware LLC. It confirms your business as an official entity, granting you access to EINs, business licenses, and bank accounts.
Filing for your Certificate of Formation is a fast and simple process. All that’s left for you to do is complete the form, pay any applicable fee, then submit it either online or by post.
Once the certificate has been filed, you need to designate a registered agent. You have two options: select an individual resident or hire a service for this task (we suggest Northwest).
A registered agent serves as the primary point of contact between your Delaware LLC and the state. They receive all legal correspondence and deliver any official notices on your behalf.
Delaware LLCs, whether domestic or foreign, must pay a $300 annual tax by June 1. Failure to make this payment could result in a fine and an interest charge of 1.5% per month on unpaid taxes.
Certificate of Registration
Once you’ve chosen to form a Delaware LLC, the next step is filing your Certificate of Registration. This document contains basic information about your company such as its legal name and address.
If you wish to change the business name listed on your certificate of formation, registration with the Delaware Secretary of State is necessary. You can search their trade, business and fictitious name database online to determine if your chosen title is available in Delaware.
Your company must designate a registered agent to receive official notices and service of process from the state on your behalf. Your agent can be either an individual resident within the area, or you can hire a third-party service like DoMyLLC to handle this task for you.
Delaware LLCs must pay an annual alternative entity tax (annual tax). The fee is $300 and due each June 1. Additionally, your LLC may need to pay a gross receipts tax if they sell goods or services and pay taxes quarterly.
Certificate of Good Standing
The Delaware Certificate of Good Standing is an official document that proves your business has the proper authorization to operate and adheres to state regulations. This certificate is essential for any company looking to open a bank account, apply for loans, register insurance policies or secure government funding or contracts.
Delaware Secretary of State issues both short-form (which shows more historical data) and long-form versions. Both contain tax information, annual reports, as well as a comprehensive outline of the company’s legal history.
In order to receive your company’s certificate, it must be up-to-date on its fees and tax obligations as well as follow state regulations. Businesses that fail to pay franchise taxes or any other due fees could face dissolution or other sanctions from the state.
Delaware Certificates of Good Standing can be acquired online or in person through the secretary of state office. They are available Monday through Thursday and on Friday from 7:45 a.m. until 11:59 p.m.
Annual Report
Domestic and foreign LLCs that form in Delaware or register there must pay a flat $300 fee annually by June 1st. This fee is known as an “Alternative Entity Tax” in Delaware.
Filing an annual report is the same for corporations and LLCs, however the requirements vary based on your business entity type.
Filing an annual report for a Delaware corporation can be complex, but it’s relatively straightforward to complete online. All that’s required is your company’s 7-digit Business Entity File Number and then input all pertinent data.
If you need assistance completing your Annual Report or any other business entity legal documents, we suggest consulting a Delaware attorney. They can offer the advice and direction that is necessary to keep your company compliant with all necessary regulations.
