Forming a Delaware LLC online can be done within hours, making the process fast, cost-effective and effortless.
Once your business is incorporated in Delaware, it must file annual reports and pay franchise taxes annually. Failure to do so could incur a $200 late fee plus 1.5% interest for each month that the report and tax aren’t filed.
Taxes
In Delaware, businesses must file their taxes and annual report online with the state. This process can be completed quickly with just a few clicks, while all information remains confidential as required by both state and federal law.
Corporations, limited liability companies (LLC), limited partnerships (LP), statutory trusts and general partnerships can all file with the Secretary of State using this online system. You’ll also have the ability to pay your annual taxes and submit corporate annual reports, reserve names and check on an entity’s status and history using this site.
Another attraction for companies incorporated in Delaware is the low franchise tax rate: $50 for domestic corporations and $125 for foreign firms.
In addition to the franchise tax, Delaware requires all businesses with employees to register with the Department of Labor. Furthermore, some counties and towns also require business licenses; so be sure to consult your local officials for more details.
Bylaws
Delaware’s secretary of state online filing system offers a wealth of resources for business owners. You can pay your annual taxes, file your corporate annual report and view your corporation’s general corporate law online.
The online filing system also gives you the capacity to reserve names, determine your entity’s status and look up a corporation’s corporate history. For both new businesses and established enterprises alike, these services can save time and money in the long run.
Bylaws are internal corporate documents that outline the fundamental rules for running your company. While they don’t need to be filed with the Delaware secretary of state, having them on file provides assurances to banks, creditors and IRS that your corporation is legitimate.
Delaware boasts a variety of corporations, such as C corporations and S corporations. While S corporations have the option to set a par value for stock they issue, most opt not to.
Registered Agent
Delaware requires corporations and LLC to have a designated registered agent. This individual or company serves as the recipient for official state government notices and documents such as annual reports, franchise tax notices, and other legal action documents.
Businesses may choose to appoint either a Delaware resident or another entity as their registered agent. This is accomplished by designating the individual or entity through Articles of Formation.
To be eligible to sign documents and communications in Delaware, a registered agent must have an actual street address in Delaware. Please note that P.O. boxes or mailbox services cannot be accepted as legal addresses in this state; only street addresses can be utilized.
Annual Report
In Delaware, all corporations (domestic and foreign) must file an annual report with the secretary of state each year. Making sure your corporation files its report promptly helps guarantee that it remains in good standing with the state.
Corporations must list the names and addresses of their directors and at least one officer. While many small businesses do not believe they need directors, every active corporation (including LLCs, LLPs, and LPs) must have at least one director.
By February 3, all domestic corporations, nonprofits and LLCs must file their annual reports online; foreign corporations must print out a form and mail it in.
Missed filing and franchise tax due dates can lead to a late fee assessment, depending on the entity. In extreme cases, businesses may lose their “good standing” status and be administratively dissolved. Furthermore, the state charges an interest rate of 1.5% per month that reports and franchise taxes aren’t filed.
