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Delaware LLC Annual Report File an LLC Annual Report in Delaware

By July 27, 2021September 12th, 2023Bookkeeping

This document is useful for different purposes and serves different users. An annual report is helpful for its stakeholders to realize the strengths and drawbacks of the business, which can contribute to the success of your company. It’s worth noting that the Division of Corporations does offer expedited service for LLC formation. To receive 24-hour service, you’ll simply have to pay a $50 fee and for same-day service, you’ll need to pay a $100 fee. To complete this form, you can access a fillable PDF on the Division of Corporations website. The LLC certificate of formation can be faxed or mailed to the Division of Corporations — you also can use the online Document Upload service to submit the completed form electronically.

  • Although this online system had much resistance when initially launched, it has been accepted by the registered agent community and proprietors of Delaware corporations.
  • Luckily, filing an annual report and paying your franchise fee can be straightforward, and most times, the information will match what was submitted in previous years.
  • If you live outside of Delaware and want to form an LLC there, it could ultimately be more expensive than starting an LLC in your home state.
  • If you have any questions about LLC annual compliance or company incorporation in general, feel free to check out our Delaware company formation services.

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.

Method 1: Authorized Shares Method

However, it is mandatory to file the report on time to avoid any penalties. A registered agent will receive legal documents and tax notices on behalf of a Delaware LLC. You can think of a registered agent as a bridge of connection between an LLC and the state government. The agent will make sure a Delaware LLC pays annual fees and does the filing on time. All corporations organized outside of Delaware must register with the Delaware Secretary of State to do business in Delaware.

Delaware LLC Annual Report: Everything You Need to Know

Luckily, filing an annual report and paying your franchise fee can be straightforward, and most times, the information will match what was submitted in previous years. If you’ve had changes to your company, such as a primary address, the names of the officers and directors, a change of Registered Agent, etc., this information will need to be updated. Filing your Delaware annual report is a yearly requirement in Delaware for corporations and is crucial to maintaining a business’s good standing within the state. All businesses, corporations and LLCs included, must pay a Delaware franchise fee, which is a yearly tax for all companies doing business in the state. Finally, you’ll also want to remember that although you don’t need to file an annual report each year in Delaware, you will be required to pay a $300 annual tax to the state.

What is an Annual Report?

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.”

Delaware LLC Annual Report: Everything You Need to Know

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.

Filing Your Delaware Annual Report and Franchise Tax

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 Delaware LLC Annual Report: Everything You Need to Know 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.

  • As of 2023, the state corporate income tax rate is a flat 8.7% of federal taxable income.
  • Another advantage of starting a business in South Dakota is its 0% corporate tax rate.
  • Late payment will cause a penalty of $200 plus monthly interest of 1.5% imposed on both tax and penalty.
  • Again, you should consult with your registered agent or professionals to stay compliant with both local and federal regulations.
  • To stay in good standing with the Delaware laws, you need to file your annual report in proper time.
  • The fee for filing annual reports is $50, including any applicable taxes.

The math here is a little more complicated since, in addition to the number of issued shares, the filing will need to also include the corporation’s gross assets. It doesn’t matter whether you are a Delaware domestic corporation or an LLC formed in another state or a non-resident; you have to pay the filing fee. Although it is quite an easy process to submit, non-resident LLC owners can face difficulty filing an annual form. To solve this problem, you can take professional help from Business Globalizer. We can provide you with an accurate and hassle-free service regarding filing an annual report. To get a Delaware business license, you can create a “One Stop” account and complete the entire process online.

Delaware Annual Report FAQS

Failure to file and submit the $300 tax by June 1 will result in a $200 penalty along with the 1.5% monthly interest charge. A key difference between LLCs and corporations is that LLCs do not need to file an annual report. Another difference is that, unlike corporations that need to file their annual report and franchise tax by March 1, LLCs have a due date of June 1 to meet their tax fee obligations. It is also a requirement that the person filling out the application should be a corporate officer (president, treasurer, secretary) or an authorized board member. Every year, LLC company owners are required by the Delaware State law to file for their LLC Annual Franchise Tax as the State does not require LLCs to file annual reports.

  • The definition of a tax shelter is any method used to reduce the amount of income that is taxable.
  • Then, after two more years, the company’s status is switched to “Void” status.
  • Regardless of the reason, you’ll need a registered agent for your company.
  • In an annual report, a lot of information is included in the following statements of the IRS.