What is an Annual Report (Annual List)?

There are some states that don’t require the filing of the annual report or list by business entities. Instead of filing annual report business entities have to file to “Annual Franchise Tax Report” in the state of Delaware. In order to file the tax report properly, you need to know what information it should contain.

The Delaware annual report is a document, which contains specific information related to business entities. This informational report has to be submitted during the time of payment of the franchise tax in the state. Annual reports in the state of Delaware contain the following information:

Limited Liability Company

Every domestic limited liability company registered under the laws of the state as well as every foreign limited liability company that has obtained the right to transact business within the state of Delaware will be required to file Delaware annual report also known as “annual tax report” with the Delaware Division of Corporations. The tax report includes:

• The name of your limited-liability company
• The file number of your limited-liability company, if you know it
• The name of the registered agent in Delaware, upon whom the service of process against the LLC may be served.
• The location or registered address of the principal place of LLC business and this should include the street, number, city, state or foreign country.
• To file an annual list, ensure names and titles of all the managers are mentioned. If there are no managers then names and titles of all its managing members will be required
• The franchise tax report will be signed by a registered agent like us or the manager or managing member of the limited-liability company. Signing the list will certify that it is complete, true, and accurate.

The above is governed by 6 DE Code § 18-1107 (2015)

Corporation (Domestic)

It is important to know that every business corporation registered in the state of Delaware will be required to file the annual tax report with the Secretary of State. Let’s look at the filing deadlines or due dates to file Delaware annual report:

• The due date for filing an annual report or list for a domestic business corporation is annually on March 1 pursuant to Delaware Title 8 Chapter 5 § 502(a)(4).

If you registered your business corporation on April 15, 2019, then your annual report will be due each year on March 1, 2020.

The above is governed by Delaware Title 8 Chapter 5 § 502

Is there a Filing Due Date or Deadline?

The Secretary of State and Delaware Division of Corporations has defined specific dates for different business entities to enable in filing an annual report on time.

Limited Liability Company

It is important to know that every LLC registered in the state of Delaware will be required to file the annual tax report with the Secretary of State. Let’s look at the filing deadlines or due dates to file annual list in Delaware:

The due date for filing an annual report or list for an LLC is annually on June 1 pursuant to 6 DE Code § 18-1107 (2015).

Example: If you registered your Limited Liability Company on April 15, 2019, then your annual report will be due each year on June 1, 2020.

You can file annual list or annual tax report with the Delaware Department of State – Division of Corporations but the process takes a lot of time. You will be required to prepare paperwork, provide details regarding the business and managers, provide financial or stock details, and above all submit on time. Alternatively, SIMPLY HIRE US and we will take care of the filing!
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Corporation (Domestic)

It is important to know that every business corporation registered in the state of Delaware will be required to file the annual tax report with the Secretary of State. Let’s look at the filing deadlines or due dates to file Delaware annual report:

The due date for filing an annual report or list for a domestic business corporation is annually on March 1 pursuant to Delaware Title 8 Chapter 5 § 502(a)(4).

Example: If you registered your business corporation on April 15, 2019, then your annual report will be due each year on March 1, 2020.

You can file annual list or annual tax report with the Delaware Department of State – Division of Corporations but the process takes a lot of time. You will be required to prepare paperwork, provide details regarding the business and managers, provide financial or stock details, and above all submit on time. Alternatively, SIMPLY HIRE US and we will take care of the filing!
ORDER ONLINE

Note: If your business entity is a foreign corporation then the due date for filing the tax report would be annually on June 30.

Example: If you registered your foreign business corporation on April 15, 2019, then your annual report will be due each year on June 30, 2020.

Is there a Late Filing Penalty of Annual Lists?

If you are unable to submit the annual report to the Secretary of the State by the due date as mentioned then will there be any penalty for LLC and Business Corporations? Let’s take a look into what late submission entails:

Limited Liability Company

If a Limited Liability Company required to file an annual list or annual tax report along with the fee prescribed in 6 DE Code § 18-1107 (2015) fails to file with the Secretary of State then a penalty will be levied.

The penalty for unpaid annual tax after the due date will lead to interest at the rate of 1 and one-half percent for each month or a portion thereof until it is fully paid. The penalty can be translated into $200 plus 1.5% interest per month.

It is important to know that the Secretary of State will mail notification at least 60 days prior to June 1 to each domestic as well as foreign limited liability company to comply with the provisions for filing of the annual franchise tax report through its registered agent in the State of Delaware

If a business does not file an annual list or tax report 3 months after the due date then on the motion of the Attorney General or upon request of the Secretary of State, such a domestic or foreign LLC will be served 5 days’ notice and the Court may direct, for an injunction to restrain the business entity from conducting its business within the State of Delaware

Corporation (Domestic)

If a business corporation filing an annual report along with the fee prescribed in Delaware Title 8 Chapter 5 § 502, fails to file with the Secretary of State then a penalty will be levied.

The penalty for unpaid annual tax after the due date can be translated to a fee of $200 along with the existing amount of franchise tax.

It is important to know that the Secretary of State will mail notification at least 60 days prior to March 1 to each domestic as well as a foreign business corporation to comply with the provisions for filing of the annual franchise tax report through its registered agent in the State of Delaware

Inability in filing an annual report or tax report after the due date can facilitate a motion from the office of the Attorney General or upon request of the Secretary of State, and such a domestic or foreign business corporation may be restrained from conducting its business within the State of Delaware

What is the cost of filing Delaware Annual List?

The annual filing fee is different for different types of businesses. Let’s take a look at the fee for LLC’s and Corporations:

Limited Liability Company – $300
Domestic Business Corporations – $50
Foreign Business Corporations – $225

Note: It is important to know that the minimum tax is $175 for business corporations that are using the “Authorized Shares” method and those using the “Assumed Par Value Capital” method, the minimum tax are $400.

How to File Annual Lists with IncParadise?

The filing process of a Wyoming annual list or annual report can require extensive paperwork as you will have to provide every possible detail right from partners or directors, name of the agent, registered address of the business, and up to date financial information of the business among others.

Is there a way to make the process easier? Let IncParadise file annual list on your behalf!

Your Benefits are:

• We will send you a due date notification and all you have to do is to order on time, so that we can ensure filing on time!
• We will ensure you receive “Reminders” regarding the due date
• We will file it directly with the Secretary of State or Delaware Division of Corporations
• Our preparation of the annual franchise tax report will be of high professional standards
• We will help save you on convenience fee

HIRE US & SAVE ON TIME, MONEY, AND PENALTIES!

We at IncParadise, are one of the respected registered agents in the state and will be responsible for initiating the filing of Delaware annual report for business corporations and limited liability companies in the state. We have access to the Delaware Online System for filing Annual Reports – DCIS – eCorp.

When you file paperwork with Delaware Secretary of State to set up LLC this is whatyou will receive:

Didn’t find answer to your question? Email as at info@incparadise.com

Almost 500 companies get incorporated in Delaware every single day, and two-thirds of Fortune 500 companies are incorporated in this small state as well. If you are thinking about incorporating, you should consider Delaware as the top choice. Here is the summary of reasons, why this East Coast state attracted so many business in the last 50 years.

Flexible Corporate Law for Delaware corporations

Delaware is known for keeping its corporate law up to date and very business friendly. One third of state income comes from incorporation fees and revenues, and local lawmakers want to make sure it will continue to be the same way in the future. That’s why companies can be sure that if they incorporate in Delaware, they don’t have to be afraid of unpleasant surprises coming in the near future. Among others, these are the most important law advantages of incorporating in Delaware

• Flexibility in the corporation’s structure and allocation of rights among its shareholders.
• Asset protection – companies can include provision in the corporate charter that eliminates personal liability of directors and shareholders
• Privacy protection – company is not required to list director’s or officer’s names in the formation document.

Quality of Delaware courts and judges, Delaware Court of Chancery

The Delaware court of Chancery is known for focusing only on business law and handling only business cases. You can be sure, that your case will be handled properly according to the latest laws and business practices. And corporations prefer this Delaware court for one more reason – it uses only judges, no juries. Judges who have excellent knowledge of local business law and plenty of experience handling business cases.

Another legal reason why corporations are choosing Delaware is that most corporate lawyers in USA have studied Delaware corporate law in the school. Almost all legal textbooks rely on Delaware case law and most lawyers are familiar with the business practices in this state.

Venture capitalists & angel investors prefer to invest to companies incorporated in Delaware

Thanks to all the reasons listed above, you have better chance of getting funding from investors if you are incorporated in Delaware. Venture capitalist and angel investors are aware of all the advantages of having a company formed in this state, their lawyers are very familiar with Delaware business laws, and pretty much all of them have experience dealing with Delaware companies and corporations.

No state corporate income tax

If your company does not operate in Delaware, there is no income tax charged to your corporation.

No personal income tax for non-residents

You are not resident of Delaware but you want to incorporate in this state? No problem, and as an advantage, you don’t have to pay any personal income tax.

Thanks to all these advantages, Delaware is the most popular state for incorporating your business. Join hundreds of thousands of companies and incorporate in Delaware today.

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Business Information & Rankings

• Delaware ranks 1st on the Work Environment Index. (2005)
• Delaware ranks 1st on the “Decent Work in America” study (UMass Amherst’s Political Economy Research Institute, 2005)
• Delaware ranked 18th for Friendly Business Tax Climate (The Tax Foundation, 2005)
• Delaware’s State/Local Tax Burden in 3rd lowest in the U.S. (The Tax Foundation).

Cost of Living Index

Crime Rate

Delaware is ranked 24th on the State Crime Index. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Delaware does not tax business inventory.

Corporate Franchise Tax
All corporations incorporated in the State of Delaware are required to file an Annual Franchise Tax report and to pay a franchise tax. The minimum tax is $35.00 with a maximum tax of $165,000.00.

Corporate Income Tax
The general corporation rate is 8.7%.

Gross Receipt Tax
Delaware assesses a gross receipts tax on the seller of goods (tangible or otherwise) or provider of services. Business and occupational gross receipts tax rates range from 0.096% to 1.92%, depending on the business activity.

Personal Income Tax
Variable. The income tax rate starts at 2.2% for income starting at $2,000 and going up to $5,000. Income over $60,000 is assessed at 5.95%.

Personal Property Tax
Delaware does not assess a state-level tax on real or personal property. Real estate is subject to county property taxes, school district property taxes, vocational school district taxes, and if located within an incorporated area, municipal property taxes.

State Sales and Use Tax
Delaware does not levy a general sale or use tax.

Unemployment Insurance
Delaware’s new employers pay 2.5% for 2 years.

There has been an unprecedented rise off late, in the number of company incorporation in Delaware. If you are wondering why this is happening, then the answer is quite simple – Delaware provides the most favorable climate or environment for setting up your business. Whether it is privacy you seek or tax benefits, you will get it all in this state.

It is therefore no wonder that some of the biggest brands and also almost 65 percent Fortune 500 companies have headquarters in Delaware.

Why Choose Delaware for Incorporation?

The state of Delaware has flexible and established business laws that ensure that you are able to set up a company in Delaware with utmost ease and you can also reap higher business profits. In fact, the U.S. Chamber Institute for Legal Reform has mentioned that the state of Delaware has the best legal climate. So what are your advantages? Let’s take a quick look at them.

Different Corporations

Delaware laws on company incorporation allows you to set up three different types of corporations. These are general, closed and non-profit. Each type of corporation has its unique structure and thus will enable you exercise a variety of options.

Tax shelter

The state of Delaware provides the much needed tax shelter to corporations. If you are thinking of incorporating in Delaware then you will be happy to know that there are:

• No sales tax in Delaware
• No corporate tax on any investment income
• No corporate tax on interest
• No personal property tax
• No value-added taxes (VATs)
• No inheritance tax
• No stock transfer or capital shares tax

Corporate Privacy

As an owner of a corporation, you will enjoy maximum confidentiality as local Delaware laws disallow revealing personal information as well as information of Corporation owners.

Foreign Resident

Directors, managers, shareholders, members, and officers, of a corporation are not required to be residents of Delaware.

How do you incorporate in Delaware?

If you are planning to set up company in Delaware then you will be required to follow certain procedures that will aid in the formation of your LLC or incorporation. We at incparadise.net have specialists on our team who can guide you through setting up or forming an LLC, a Delaware C Corporation, and Delaware a S Corporation in the shortest possible period.

Here is a step by step procedure of how to incorporate in Delaware

Type of Business

You need to identify the type of business you want to start. You can choose from a benefit corporation to a general corporation, non-stock corporation, close corporation, LLC, limited partnership, or series LLC.

Business Name

The second step is to identify a name for your business along with the required suffix, which will indicate the type of business entity you have formed. If you opt for company incorporation in Delaware then some of the common suffixes include Corporation (or Corp.); Incorporated (or Inc.); Limited (or Ltd.); and Company (or Co.). If you opt for an LLC, the permitted suffix is LLC, Limited Liability Company, or L.L.C.

Certificate of incorporation

You will need to file certificate of incorporation, which we can always file on your behalf through the standard process or online or through expedited process.

Federal Tax ID

You will require a Federal Tax ID if you are planning to hire employees. It is also mandatory for opening a bank account in the name of the Delaware Corporation.

Receipt of Certificate

Once the company incorporation in Delaware process is complete, you will receive the “Delaware certificate of incorporation”.

Delaware Incorporation Agent

You will need a Delaware registered agent like incparadise.net to ensure your business meets all the necessary requirements. We can also receive any and all legal and business related paperwork on your behalf.

Costs and Fees associated with Delaware Incorporation

Is incorporating in Delaware expensive? This is question that most of our previous clients have asked and the answer is that “We ensure it is not burdensome to you!”

Check Fees here!

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