Delaware Business Tax

An entrepreneur wanting to form a new business in the state of Delaware needs to check their federal, state, and local or county business tax requirements. Although, the state is considered to be a tax shelter; you may be required to file Delaware business taxes. How do you determine what type of taxes your businesses are required to file? The type of Delaware business tax return to be filed is dependent on the type of entity you form as corporations have different tax filing requirements as compared to a limited-liability company.

The Internal Revenue Service (IRS) categorizes federal business taxes under the following:

• Self-Employment Tax
• Income Tax
• Employment Tax
• Excise Tax
• Estimated Tax

It is important to note that the type of state and local taxes will vary according to the state where you form or register your business.

What are Delaware business taxes?

Delaware, like most of the other states, taxes some form of business income that is derived within the state. The income derived from specific businesses is taxed mostly depending on the legal structure of the said business. Although, in some states, there are no corporate income taxes, Delaware has a corporate income tax. In this state, there is Delaware franchise tax and business entities like LLC, general partnerships, and limited partnerships also have to file Delaware business taxes. Depending on the legal form of your business, you may have to file one or more of the taxes like the LLC which you are not required to file with franchise tax as it is applicable to only traditional corporations.

Delaware business taxes comprises primarily of the following:

• Franchise tax
• Delaware corporate tax
• Annual tax
• Gross Receipts Taxes
• Withholding Tax

What are the tax advantages in Delaware?

Delaware is considered a business friendly state with a strong tax shelter. This makes the state extremely attractive to entrepreneurs and investors. Whether you are incorporating or forming a limited liability company, there are certain Delaware business tax benefits that you will enjoy including tax credit programs. Some of the tax advantages are:

• Business Friendly Tax Environment: One of the top Delaware business tax benefits is that the state does not levy the following taxes on new or existing entities:
  • There is no Delaware corporate tax on interest or any other investment income, which a holding company based in the state may earn. If a holding company owns equity investments or fixed-income investments then it will not be taxed on the gains on a state level.
  • There is no Delaware corporate tax on goods or services that is being provided by a Delaware corporation operating outside the state.
  • The State of Delaware does not have any personal property tax and hence you will not be required to file any Delaware business tax return on the same, although local county real estate property taxes may be applicable but they are quite low.
  • There are no Delaware business taxes on intangible income like that of trademark royalties
  • Whether your company is situated in Delaware or it is out-of-state, any in-state purchases will not be subjected to sales tax.
  • Delaware does not have any ad-valorem or value-added taxes (VATs)
  • The state does not have any use tax, unitary, or inventory tax
  • There are no stock transfer or capital shares taxes in Delaware
• Tax Credits: The average cost of doing business in the state of Delaware is almost 25 percent below the national average and the tax incentives play a key role in keeping the average low. The state offers a wide variety of tax credit programs as a part of the Delaware business tax benefits package and this refundable credit helps save money, which is important for startups and small businesses. Some of the most popular tax credit programs include:
  • New Economy Jobs Tax Credit
  • Additional credits for job creation in targeted growth zones
  • New Business Facility Tax Credits
  • Public Utility Tax Credit
  • Brownfields Credit
  • Gross Receipts Tax Credit
  • Angel Investor Job Creation and Innovation Tax Credit
  • Brownfields Credit
  • Business Finder’s Fee Tax Credit
  • Clean Energy Technology Device Manufacturers’ Credit
  • Research and Development Tax Credits
  • Individuals with Disabilities Tax Credit
  • Neighborhood Assistance Tax Credit
  • Land and Historic Resource Conservation Tax Credit

IncParadise can help you start a Delaware new business today!

How Delaware Businesses are taxed?

If you are planning to form a new business in Delaware then you may be required to file a Delaware business tax return and this will be applicable to the type of business entity and the activity like sale of goods or services. The tax rate will be determined by the type of Delaware business taxes applicable to your business and hence it is important to identify the taxes according to the business type. This will also ensure you are better prepared for the filing of tax returns and thus cut down on any unexpected fee or fines. The different Delaware businesses and the way they will be taxed are as follows:

Delaware Corporate Taxation

If you form a domestic or a foreign corporation in Delaware then you will have to file a Delaware business tax return unless exempt under Section § 1902 (b): Imposition of tax on corporations; exemptions; Title 30, Delaware Code. The applicable Delaware corporate tax is:

• Corporate income tax: The corporate income tax return has to be filed using Form 1100 or Form 1100EZ using their Employer Identification Number (EIN). The applicable Delaware corporate tax is 8.7% of the federal taxable income allocated as well as apportioned to the state of Delaware. The percentage tax applicable is based purely on an equally weighted 3-factor method of apportionment. The factors taken into consideration are wages, property, and sales in the state as a ratio of wages, property, and sales everywhere else.

A corporation formed in the state may be required to file a Delaware business tax return for gross receipts tax and withholding tax.

Delaware Franchise Tax

If you form a domestic or foreign company in Delaware then you will have to pay franchise tax. The Delaware franchise tax is a fee that has been imposed by the state for the privilege or the right to own a company or business in the state. This is one of the few Delaware business taxes that are not based on the income of the company or its activity. There are two methods for determining the amount of tax to be paid. If the Authorized Shares method is used then the minimum tax is $175.00 and if the Assumed Par Value Capital Method is used then the minimum tax is $400.00 for corporations. The maximum franchise tax using either method should not exceed $200,000. On the other hand, the franchise tax for a Delaware LLC is a maximum of $300.

The due date for the Delaware franchise tax is different for different types of businesses. The tax for corporations is due on March 1st of each year while the due date for an LLC is June 1 each year. If this Delaware corporate tax is not paid within the due date then the state may impose a penalty and a monthly interest fee of 1.5 percent.

Delaware personal income tax

If you form a company in Delaware, which is a pass-through tax entity, then you will be required to file Delaware business taxes in the form of personal income tax. A pass-through tax entity is a type of business where the earnings and losses of the company are passed onto the owners. The most common form of this type of business entity that files a Delaware business tax return is:

• Sole proprietorships
• Limited liability companies
• Partnerships
• S corporations

The personal income tax rate in Delaware has changed and the tax rate varies from 2.2% to 5.55% for income below $60,000, and if the income is $60,000 or more then the tax rate is 6.60%. The form for filing a Delaware business tax return will be different based on the type of entity for example, a single-member LLC classified as partnership has to file “form 300” while a single-member LLC classified as a sole proprietorship has to file “form 200”. You will also have to report all your profits and losses on Schedule C for efficient filing of Delaware business taxes.

Delaware withholding tax

If a company is conducting business in Delaware or maintaining an office in the state and is also paying wages or providing other forms of remuneration to resident or non-resident Delaware individuals then they will be required to pay Withholding Tax. This type of Delaware business taxes requires a business to withhold an estimated amount from the employees as tax.

The due date for filing Delaware business tax return for withholding taxes varies according to the payroll end date for example; if your payroll end date is 01-01-21 then the due date for return will be 01-06-21 for eight monthly filers. Similarly, for quarterly filers, if the quarter end is 03-31-21 then the filing due date would be 04-30-2021. The withholding tax forms are normally sent after a withholding application is filed with the Delaware Division of Revenue but you will have to open a withholding account using the One Stop Business Licensing and Registration system. Failure to file Delaware business taxes like the withholding tax may lead to a penalty of 5% per month along with an interest of 0.5% per month.

Gross receipts tax

If you form a business in Delaware then you may be required to file gross receipts tax. You will have to file a Delaware business tax return if you are a seller of goods (tangible or otherwise) or if your business provides any type of service in the state. It is one of the important Delaware business taxes where-in the term “gross receipts” refer to the total receipts received by a business from sale of goods or services rendered within the state. It is important to note that deductions for this type of Delaware business taxes are not applicable on labor costs, cost of goods, interest expense, property sold, discount paid, state or federal taxes, delivery costs, or any other expense allowed. The tax rate can vary from 0.0945% to 1.9914% depending on the type of business activity for example, the current tax rate for an advertising agency and General Services is 0.003983% while that of Automobile Manufacturers is 0.000945% and Retailer – General is 0.007468%. You can get more information on gross receipts tax from the Department of Revenue website.

Ready to Incorporate your Delaware company?

Each type of business has its own set of requirements, which is dependent on the business activity and the first step towards making it operational is by registering with the state. IncParadise, an expert incorporation service provider in Delaware can help you to register your LLC or corporation in the state.

At IncParadise we value our customers and recognize the need for businesses to remain compliant with annual requirements as specified by the state. Hence, we offer Delaware additional services for all types of businesses, so that they can choose what they need and thus fulfill their legal or state based requirements. Our additional services include Delaware domestication, foreign qualification, EIN or Tax ID, and Certificate of Good Standing among others.

Delaware Annual Report

A Delaware annual report is considered to be a comprehensive overview of the achievements and financial statement of a business entity from the previous year. An annual report is also known by different names in different states like Annual Franchise Tax Report in Arkansas, Periodic Report in Colorado, statement of information in California, Two-Year Report in the District of Columbia, Annual Registration in Georgia, and Business Entity Report in Indiana among others. Some states require this report to be filed annually and in some states it is biennial. The important question is whether your company needs to file a Delaware annual report information sheet or do you have to file some other type of report?

What is Delaware annual report?

A Delaware annual report is a type of document that needs to be submitted to the state annually. The reports contain specific business information like:

• The address of a company’s physical location
• The name and address of at least one officer
• The names as well as addresses of all directors

The Delaware annual report information also requires an authorization by an officer or director of the company for filing purposes. Since the annual reports in Delaware state are electronically stored, hence the details of this informational report cannot be viewed publicly thus providing a layer of privacy for businesses.

If you change your business address or officers, what happens? In such a scenario, especially if the change takes place mid-year, an update to Delaware annual report needs to be filed. It is important to note that all forms of annual report amendments will be accepted for a period of one year from the date of the original filing.

Who has to file Delaware annual reports and when is the due date?

Whatever form of business you register with the state of Delaware, the annual requirements may be the same or different. The requirement of Delaware annual report filing is dependent on the form of business. For example, domestic and foreign LLCs are not required to file an annual report and instead have to file an “Alternative Entity Tax”or annual tax with a flat fee. Business entity types like domestic and foreign limited partnerships and general partnerships do not require filing an annual report but are required to file an annual tax of $300. On the contrary, a foreign or domestic corporation will be required to file an annual report pursuant to 2 DE Code § 515 (2014 through 146th Gen Ass). The fee for the Delaware annual report information is different for exempt and non-exempt domestic corporations and foreign corporations.

There is a Delaware annual report due date for different forms of businesses and failure to file within the due date may lead to penalties. Business corporations are required to file their annual report along with franchise tax on March 1st, each year. The due date for foreign corporations is June 30th each year while the due date of a limited liability company’s Delaware annual report filing is June 1st of each year.

Filing a Delaware Annual Report

The Delaware annual report filing by a limited liability company, corporations, and other businesses is required by law although some forms of businesses need to file an annual tax instead of the annual information report. Every domestic and foreign corporation that has been organized under the laws of this state and has obtained the right to transact or carry on business in this state will have to file the annual report along with a franchise tax pursuant to 2 DE Code § 502 (2014 through 146th Gen Ass) and 2 DE Code § 515 (2014 through 146th Gen Ass). The filing should be done prior to the Delaware annual report due date. Some of the important aspects to consider while filing this report include the filing due date, where to file and the applicable fee.

Steps to file the Delaware annual report

The Delaware annual report filing process may look complicated, hence the necessary guidance required towards filing it. It is always beneficial to use a professional company with years of experience in filing Delaware annual reports as it can help you to avoid any potential problems. We are offering this service and we will gladly help you with it. If you are interested in the filing of the Delaware annual report process then the following information will provide the necessary guidance.

Step#1: Go to Delaware Division of Corporation website

The website of the Delaware Division of Corporation provides comprehensive information pertaining to the annual report filing along with the fee and Delaware annual report due date. The annual report can only be filed online using the Delaware Corporations Information System: DCIS-eCorp.

Step#2: Enter business entity file number

In order to file the Delaware annual report online, you will need to provide the 7 digit Business Entity File Number. This file number is issued by the state of Delaware to each new business at the time of incorporation or formation. It is a 7-digit number that is used for identifying your company and also filing the Delaware annual report information with the Division of Corporations. You will be able to locate this number on your Certificate of Incorporation or Certificate of Formation.

Step#3: Enter corporate information

In order to facilitate the Delaware annual report filing, you will be required to enter specific corporate information like:

• Exact legal name of the business entity
• Total number of authorized shares
• Class and par value of the shares
• Principal business address and phone number
• Name and address of an officer
• Names and addresses of all Directors

Step#4: Pay franchise tax and annual report fee

The final step towards filing Delaware annual report information is to submit the report fee and also pay franchise tax. The annual report fee for non-exempt corporations is $50 and that of exempt corporations is $25. The fee for foreign corporations is $125. The franchise tax will differ based on the type of corporation. For example, the franchise tax for a non-exempt non-stock corporation is $175. If your company is a non-exempt stock corporation then the franchise tax will be calculated using the Authorized Shares Method or the Assumed Par Value Capital Method. The minimum tax is $175 for Authorized Shares Method and $400 using the Assumed Par Value Capital Method. The maximum tax using either method is $200,000.

Alternatively, you can take advantage of our entity management software as it helps in tracking the annual requirements of your company and thus ensure Delaware annual report filing on time. We will not only help you to file your annual report but also ensure you are able to submit correct Delaware annual report information.

Need help filing the Delaware Annual Report?

Consequences of failing to file annual reports

There is a Delaware annual report due date within which you are required to file the report. The due date is different for different forms of business entities but what happens if you fail to file on the due date? Failure to file the Delaware annual report and franchise taxes by business corporations on or before March 1st can lead to penalty. The penalty is $200 along with an interest of 1.5% per month, which is applied to the unpaid tax balance.

According to 8 DE Code § 510 (2018) if a business corporation neglects to file the Delaware annual report information or franchise taxes for a period of one year then the charter of the said corporation will be void, and the company will be declared inoperative.

The penalty for non-payment or late payment of annual tax by a limited liability company is the same as that of a corporation.

Need Any Assistance in Filing Delaware Company Annual Report?

The Delaware annual report filing with the Delaware Division of Corporations is mandatory for corporations by law. There is a difference in the annual requirement for corporations and a limited liability company as the latter is not required to file an annual report. There may be times when a company is unable to file within the Delaware annual report due date. This is where IncParadise ensures you never miss your due date for filing annual report or franchise taxes and this is made possible by providing the necessary assistance and services related to annual report filing on time.

You can also benefit from our entity management software, which keeps you updated regarding the company’s operations and sends reminders regarding annual requirements.

Delaware Business License

Once you form a business, you have to make it operational and for that you will need to obtain a business license in Delaware. Delaware law states that every business, both Delaware and non-Delaware is required to obtain an annual state business license. You may also require additional state licenses or permits depending on the type of business activity you may have. You may also need to apply for and obtain Delaware business license if your business qualifies under any of the mentioned state regulated industries. The business licensing aspect of regulated industries is managed and licenses or permits are issued by state agencies like the Division of Public Health issues food establishment licenses and permits.

Some of the regulated industries include:

• Agriculture
• Contractors, Building, Construction
• Food Establishments
• Alcohol
• Automobile
• Banking
• Child Care
• Boating
• Environmental Protection
• Manufacturing
• Health
• Lottery or Gaming

Apart from the state business license, you may also need to apply for and obtain Delaware business license and permits in the county or city that your business is located in. For example: If you start a business in New Castle County, Delaware and it is situated within the city limits then you will be required to obtain a City of New Castle Business License. The Delaware business license fees for operating in the City of New Castle will take into account the number of employees including the owner.

Delaware small business information

If you are planning to start a small business in Delaware then you will need to register it as well as obtain a business license in Delaware. As a startup or an entrepreneur, you will also require information and resources that will help you strengthen your business and help it to grow. Where can you get such information? One of the best places to search for informational resources is the “Business Resource Connection” of the Delaware Division of Small Business. This agency is a part of the Delaware Department of State that is focused and committed towards supporting new businesses in their path towards achieving growth and sustainability through approximately 300 business-focused programs. You can search using location, specific need, industry, business stage, and target community.

If you are looking for a comprehensive business guide that provides information and resources pertaining to Local Business Assistance, Funding Programs, Government Contracting, SBA Certification Programs etc., then the U.S. Small Business Administration (SBA) – Delaware Edition is a great place to start. You can download their resource guide as the information enclosed can be extremely helpful. The agency has dedicated “Resource Partners”who specialize in offering counseling, mentoring, and training programs to help startups and small businesses to thrive through different stages of their business life cycle. You can become a part of these programs prior to or post application for a business license in Delaware.

The Delaware Small Business Development Center is another agency that provides a wealth of information and resources that will help you to establish and grow your new business. They offer a variety of training programs including online training, on-location classes, seminars etc. The primary objective of the Delaware Small Business Development Center (DSBDC) is to develop as well as support entrepreneurship with the help of University of Delaware’s Office of Economic Innovation and Partnerships (OEIP).

Delaware annual state business license

Every business has to fulfill business licensing requirements in their state of formation as this helps to make the business legally operational. A business license in Delaware will help you to conduct your business in the state. A business license is basically a type of approval or permit that is issued by the state, regulatory bodies, state agencies, and county clerk etc., to authorize the said business to operate within the state’s boundaries. There is a Combined Registration Application (CRA) that you can submit with the Division of Revenue along with your EIN information to obtain a state license. It is also important to note that you may need to apply for and obtain licenses that are issued locally by the city council or county clerk offices. This requirement may vary from one county to another. Renewing a Delaware business license is also very important as failure to do so may lead to your business being unable to operate in the state.

The process of filling and filing a license along with Delaware business license fees can be disconcerting and complex as depending on the business activity, you may need to apply for state licenses from different regulatory agencies. This is where our comprehensive “Business License Research Report” can be extremely helpful as it contains a list of filing instructions, supporting document requirements and fees for all business licenses and permits in the state of Delaware.

Obtaining a Delaware Business License

An entrepreneur or a business entity in any state has to fulfill their business licensing needs prior to starting their business operations. A business license in Delaware is a crucial aspect of any business formation and operations and helps in protecting an entity legally while boosting credibility, which provides access to state or city wide funding. Business licensing is a state-level requirement although you may need to obtain a Delaware business license on the local or county level also. The main reasons for a business license requirement are:

• Recognition of your company
• Ensuring responsibility towards yours or the actions of the entity
• Protecting public safety and health
• Monitoring finances for tax purpose

A business in any form requires a business license in Delaware pursuant to Title 29, Chapter 103 – Business Registration and Licensing System – § 10301 to § 10308. Let’s take a look at the process for obtaining or renewing a Delaware business license.

How do I obtain a business license in Delaware?

If you are an entrepreneur or a new business owner then you need to apply for a business license in Delaware with the Division of Revenue. The following steps will help you to obtain a Delaware business license:

• You can apply online with the Division of Revenue by using the “One Stop Business Licensing and Registration Service“
• Alternatively, you can download the “Combined Registration Application (CRA) Form”
• Once you complete the CRA form, you can mail it along with the required Delaware business license fees to:
  • Division of Revenue
    P.O. Box 8750
    Wilmington, DE 19899-8750

It is important to ensure the form has been filled correctly and provides accurate information as incorrect or lack of information may result in the application getting rejected.

You may need to also file multiple business licenses as well as regulated industry licenses depending on the business activity. There are several state regulated industries wherein you will be required to apply for a Delaware business license with the respective state agencies. e.g., a food establishment like a restaurant will have to fulfill regulatory requirements as specified by Delaware Health and Social Services, Delaware Division of Public Health. You will also be required to apply for renewing Delaware business licenses with the licensing state agencies.

Do you need to find out what Delaware business licenses you need?

How long does it take to receive a business license in Delaware?

A Delaware business license or permit will be issued once you have filed your licensing or permit application with the Division of Revenue along with the required Delaware business license fees. Generally, most businesses will receive or obtain a Delaware business license within a month from the date of registration with the Division of Revenue.

If you have applied online using the One Stop Business Licensing and Registration Service along with Delaware business license fees then you will have the advantage of printing a temporary license once the registration or renewal process is complete. A permanent license is normally sent within 10 working days from the date of filing the application.

Renewing Delaware business license

A business license in Delaware is issued with the annual requirement of renewal. It is normally issued for a calendar year or 1-year and expires on December 31 each year. Once it expires, you will need to apply for renewing a Delaware business license as failure to renew may hamper your business operations in the state. You will have the option to renew your license for a term of 1 year or 3 years.

There are two ways for renewing a Delaware business license and they are:

• You can renew your business license online using the Online Renewal option at the Division of Revenue portal.
• You can complete a business license renewal form and mail it to the office of the Division of Revenue along with the appropriate Delaware business license fees

Delaware Business License Fees

The annual Delaware business license fees will vary depending on the category of activity the business pursues. For example, the fee for Automobile Manufacturers is $75 while that of an Outdoor Music Festival Promoter is $750. However, the license fee is generally $75.00 for a first location for 1 year. In the second year, you will have the option of renewing Delaware business license for a 3-year period and the fee will be 3 times the original fee i.e., if the annual fee is $75 then a 3-year fee will be $225. Similarly, you will need to apply for a separate license for each separate business activity and multiple locations.

How does IncParadise help you?

Every business being formed in Delaware has different objectives as well as business activity and hence the requirement of a business license in Delaware will be different. You may require one license or permit or multiple licenses based primarily on the location of your company and business activity. This is where IncParadise can play a key role and provide guidance that will help you to obtain a Delaware business license or permits and ensure you are able to maintain compliance with the Delaware licensing regulations.

IncParadise is one of the most reputable registered agents in the state and we focus on providing a service that will help you to fulfill a variety of business related requirements. You can take advantage of our additional services that vary from obtaining an EIN to Delaware Annual Report assistance, S Corporation election, Foreign Qualification, Certificate of Good Standing, and Business License Report among others.

Doing Business As or DBA in Delaware

Delaware is one of the most favorable states for starting a new business and especially popular among first time entrepreneurs. If you are planning to start a new business in this business-friendly state then you may be required to file a dba in Delaware. It is not a mandatory requirement but is filed by several companies depending on their business identity and under what name they want to conduct their business. There are several aspects you need to consider prior to Delaware dba registration so let us begin by understanding what “Doing Business As” is and whether you require it or not.ring a Delaware registered agent, and obtaining a tax ID among others.

What is DBA in Delaware?

If you are planning to start a new business in Delaware then one of the key areas to focus on is the name of the business. The business name has to be registered or reserved with the state but there is an alternative route, which is to file dba in Delaware. The simplest way to define a DBA or “Doing Business As” is that it is the name you choose if you are planning to conduct your business under a name other than your own name. It is a name that is most often registered by companies that are sole proprietorship or partnership businesses. A DBA or doing business as in Delaware is also known as an assumed name, fictitious name, or even a trade name.

For example: An individual Jason Patrick wants to start a music retail business in Delaware. He can name the music store as Jason Patrick & Co or as “Being Musical” wherein, “Being Musical” would be considered as the DBA name. So, Jason Patrick would have to file a dba in Delaware under this name.

When do you need DBA in Delaware?

If you are planning to conduct a business in the state of Delaware then you have to identify whether you need to reserve a business name or file a dba in Delaware. It is however important to identify the circumstances in which you may be required to register for a DBA. Some of the circumstances are:

• If you are planning to start a sole proprietorship or general partnership firm and want to conduct your business under an assumed name or any name other than your own name then you will need to file for Delaware dba registration.
• If your said business wants to offer a product or a service that is different from the registered company name then you will be required to file a dba in Delaware. For instance, if your business has been into selling casual clothes and now you want to sell trekking equipment then you may be required to register a separate name or DBA for the trekking equipment business.
• If you are planning to form a Limited Liability Company or a business corporation and you want to operate the company under a name that is different from the name of your company then you will be required to file for DBA after conducting a Delaware dba search.

Filing DBA in Delaware

There are different types of businesses you can form and operate like an LLC or a business corporation in Delaware. You can also file DBA names for your business after conducting a Delaware dba search. Your DBA also known as a Delaware trade name should be unique and also meet the state’s trade name or doing business as in Delaware requirements. So what is the process of filing a DBA? Let’s look at the important steps in this filing process.

Delaware DBA name search

One of the first steps towards registration of a trade name or doing business as name is a Delaware dba search. This process will not only help in determining the right DBA name but also identify the availability of your DBA name. You can conduct your DBA name search and also need to ensure your chosen name fulfills Delaware dba requirements and is compliant with the applicable laws as mentioned in Title 6, Commerce and Trade, Subtitle II, Other Laws Relating to Commerce and Trade; Chapter 31: Registration of Trade Names, Partnerships and Associations.

The primary objective of the Delaware dba search is to ensure that your trade name is unique and is not similar to that of another business in the state.

Register Delaware DBA

Once you have conducted a Delaware dba search, the next step is to register the name. The process for Delaware dba registration requires you to file an application with the Prothonotary’s office at the Superior Court pursuant to Title 6 Del. C. Chapter 31 § 3101 and § 3103. The court is present in each county of Delaware to enable registration of a Business, Trade, and Fictitious Name. You need to ensure the Registration Certificate for DBA is completely filled and the information provided is accurate. The DBA Registration Certificates should highlight the date of business formation or when it was organized and need to be notarized.

You will be able to register as many DBA names as you require although you will be required to file separate applications for the same. Alternatively, we at IncParadise can help you with Delaware dba registration.

Are you wondering how to file your Delaware DBA?

Managing Delaware Doing Business As (DBA)

Once you file a dba in Delaware, the process doesn’t stop there as you may be required to renew it or change the existing name. There are three aspects of Delaware DBA and they include renewal, changing of the name, and canceling the dba. These aspects have to follow the rules and laws as mentioned for Delaware dba requirements.

• Renew Delaware DBA – In the state of Delaware, there are no Delaware dba requirements for renewal of the name.
• Change Delaware DBA – There are times when you may file a dba in Delaware and then want to change it. There could be business, branding, or personal reasons for changing it. In such a scenario, you will have to fill out a Supplemental Change Form for doing business as in Delaware and submit it with the Superior Court along with a fee of $25.
• Cancel Delaware DBA – If you are planning to cancel your Delaware dba registration then you have to fill out a Termination Affidavit Form submit it with the Prothonotary’s Office at the Superior Court of the county you had originally filed your DBA with.

Need Any Assistance in Filing DBA?

The process to file a DBA in Delaware may require you to fulfill certain Delaware dba requirements as specified by the Superior Court. The process can be long and complicated but if you want to save time and ensure filing of Delaware DBA then IncParadise, as one of the top registered agents in the state, can help you with the registration process.

IncParadise can not only help you to file a DBA in Delaware but also provide a wide variety of additional services that will help you to make your business or company operational in the state. Our services include getting tax id, corporation status, dissolutions, reinstatement, and foreign qualification among others.

An Entrepreneur’s Guide to Start a Business in Nevada

We understand that the requirements for each new start-up or entrepreneurship are different and so are the procedures to form a business in Nevada. Thus, we have created this guide in the form of a detailed Nevada business checklist that will be useful to every entrepreneur and business owner. The guide will take you through the advantages and benefits for an entrepreneur to conduct business planning, entrepreneurial training, networking events and to choose the best business structure. It will also provide guidance for registering a business, funding, and marketing it.

Why choose Nevada to start your business

Nevada is one of the few states that have a favorable tax climate, just perfect for a start-up or small business. There are several aspects of the economic and business environment that makes the Silver State such an attractive destination for entrepreneurs and business owners. If you are thinking of doing business in Nevada, it is important to know the many advantages that it offers. Some of the advantages are:

Low Cost of Living

The first thing that comes to mind when you think of Nevada is “Las Vegas!” although that is not the only attraction for businesses in this state. A new business in Nevada needs to consider the financial impact of operations including the cost of living. This low cost of living also opens the doors for businesses to hire talent from other states to work in Nevada.

Tax Laws and Benefits

Tax benefits is one of the top reasons driving business formation and if you register a business in Nevada, you won’t have to worry too much about taxes. Why? The state is considered by many as a strong tax shelter. For example, a limited liability company doesn’t have to pay any franchise tax or personal income tax. Similarly, different forms of businesses can enjoy different tax benefits.

Tech Revolution

It may be difficult to identify what is the best business to start in Nevada but one aspect you can be rest assured of is that it is the hub of a tech revolution! The tech story started with Tesla with their Gigafactory 1 in Reno and today, it is home to several tech startups. Big brand names like Apple have their businesses in Nevada, especially in the Reno Technology Park.

Steps to Start a Business in Nevada

The one thought that bothers most new entrepreneurs or start-ups is identifying the steps to start a business in Nevada. There are many aspects to consider that can drive a business to grow from a sapling stage (ideas) to becoming a huge tree (revenue generation). Let’s take a detailed perspective into the various stages of starting a business from scratch.

1. Planning

A business cannot succeed without proper planning and hence it should be an integral part of any Nevada business checklist. Business plans are like blueprints that provide a detail of how best to effectively operate a business based on what business objectives needs to be achieved. Some of the benefits of a strong business plan include:

• Provide a focused road map to form a business in Nevada and target long-term growth and gains
• Test overall viability of an entrepreneur’s objective and ideas
• Assists with research and critical strategies focusing on complex short and long-term business issues
• Provides an action plan related to making a business operational in the local, statewide, or global marketplace
• Help in securing operating capital through bank loans or equity financing
• Provide an insight into starting an online business in Nevada
• Provide a strong business plan attracts angel investors or venture capitalists

• Customizable Templates: A business plan will help you to decide the best business to start in Nevada. One of the ways of going about creating such a plan is to download a complete “Business Plan Template” or specific segments of the plan like “Marketing & Sales Template” or “Financial Projections Template”.
• Innovative Apps: These are innovative applications meant for those who plan to start businesses in Nevada. The applications will help you create a “Business Model Canvas” (BMC) on your computer or laptop and can be shared with the entire team. The Business Model Canvas is basically a lean startup and strategic management template that provides a visual chart with different elements including infrastructure and finance. Some of the most popular business model canvas applications include Canvanizer 2.0, Strategyzer, etc.

2. Entrepreneurial Training/Seminars/Workshops

Modern day entrepreneurs are considered to be the driving force of society and the economy of almost every nation and a start-up business in Nevada needs the strong leadership of an entrepreneur. Why Entrepreneurial Development Programs are Important?

• Provide insight into how best to form a business in Nevada
• How to move out of the scope of the existing market
• How best to improve existing or new services, products, or technology
• Create a social change
• Create job opportunities or increase employment
• Increase innovation opportunities by promoting research and development
• Ensure optimum utilization of available resources to promote economic growth
• Enhance overall standard of living

• NxLeveL for Entrepreneurs: This is a multi- week entrepreneurial development program that has been created to provide information and guidance on how you can plan for business success. Some of the aspects of setting up a business in Nevada that have been incorporated by the program include business strategies, goal-setting, management techniques, and financial accountability.
• Economic Development Authority of Western Nevada (EDAWN): This is a program that is focused on empowering entrepreneurs through inspiration towards starting an online business in Nevada, experiential learning, connectivity as well as accolades.

3. Attend Networking Events

If you are an entrepreneur planning to form Nevada business then networking will be critical towards determining the success of your business. A research “Informal Innovation: Entrepreneurship and Informal Communities” revealed that almost 78% of startups owe business success to networking. This is one of the most important aspects of any Nevada business checklist – every entrepreneur should attend networking events frequently.

• New Contacts: A networking event is a platform where you will be able to meet potential clients and also generate referrals.
• Identify New Opportunities: One of the highlights of a networking event is that it will help you identify opportunities for future partnerships and expansion. It will also help you identify new markets for services and products if you are planning to form a business in Nevada.
• Business Visibility: The platform will help you create high visibility for a start-up or new business. Networking events like business luncheons can raise your business and personal profile.
• Knowledge Platform: One of the benefits that you can enjoy is sharing of ideas and receiving knowledge from other business owners or entrepreneurs. This knowledge and experience of others can assist in doing business in Nevada.

• Small Biz NV: They provide a detailed calendar of networking and start-up business programs that you can check here. The programs have been initiated by the Department of Business and Industry, State of Nevada. This is an essential program in any Nevada business checklist.
• Startup Weekend Events: The programs are particularly focused on Techstars Startups and they are held over weekends. The program provides a platform to connect with new customers and helps sharing experience. The program calendar is available here and it takes place in Reno or Elko.

4. Choose a Business Structure

One of the most important requirements to start a business in Nevada is choosing the correct business structure. Each type or form of business has its own benefit, laws, and registration requirements. In fact, there are separate laws and forms to register a business name in Nevada. The different types of business structures you can form in Nevada include:

• Limited Liability Company (LLC): A Limited Liability Company is considered to be a hybrid entity, which combines the benefits of a partnership and a corporation. If you want to register a business in Nevada as an LLC then it will be governed by Chapter 86 of the 2015 Nevada Revised Statutes. You can form a domestic, foreign, and a professional Limited-Liability Company in the state. You will be required to register your business name in Nevada prior to filing formation documents.
• Corporation: This type of business entity is considered to be created by an “artificial person” and is operated with the permission of the state of incorporation. The artificial person is only on paper and it should have at least one stockholder. If you form a business in Nevada and register it as a Corporation then it will be governed by Chapter 78 of the 2015 Nevada Revised Statutes. The type of tax treatment will help you decide the best business to start in Nevada.
• Sole Proprietorship: A Sole Proprietorship is a type of business that any person can form and it is intended to perform a service or engage in a trade that results in profit. An entertainer, a freelance photographer, or an independent contractor are examples of a proprietorship business. It is normally a one man show. Although sole proprietorships are not required to file formation documents with the Secretary of State; you will require a State Business License to start a business in Nevada.
• Partnership: A partnership business structure involves two or more owners and is governed by Chapter 87 of the 2015 Nevada Revised Statutes. You can register your business in Nevada in the form of different types of partnership like a Limited Partnership (LP), Limited-Liability Partnership (LLP), and Limited-Liability Limited Partnership (LLLP). You will be required to register the business name in Nevada and submit the Initial/Annual List of General Partners with the Secretary of State. Partnership businesses can be domestic or foreign entities.

Form the top Nevada Business Structures

5. Naming Your Nevada Business

An integral aspect of forming a new business in Nevada is name registration. Although many people think that they should not devote much time to choosing a business name, that should not be the case. Why? There is a process to register your business name in Nevada and as an entrepreneur, you should ensure all aspects of the naming process is considered. The following tips will help you choose the right business name:

• You need to ensure that your chosen name is distinguishable from any other name existing on the records of the Secretary of State
• Business names will have different criteria according to the chosen structure of business in Nevada e.g., the name of a limited-liability company must contain the words “Limited-Liability Company,” or abbreviations like L.L.C., and LLC among others.
• The business name should provide an idea of your business activity e.g., if you plan on starting an online business in Nevada then your business name can be “Lime Kart LLC”.
• The chosen name to form Nevada business should be easy to pronounce and should sound positive
• The name should be available for “domain name” so that you can target your prospective customers quickly

• Business Name Generators: These are software or online applications that you can use to find a suitable name. Some of the popular name generators include Novanym, Namelix, Anadea, and Wordlab among others.
• Business Name Ideas: You can find business names based on type of product, service, or industry. One of the websites offering ideas to find an appropriate name for your business in Nevada is Squadhelp.
• Domain Name: You can book a domain name before you register your business name in Nevada so that you are one step ahead of the competition. Some domain operators you can use include Lean Domain Search, godaddy, and hostgator among others.

6. Choose Your Business Location

The location to form a Nevada business is critical to the operation and growth of the entity. In fact, the best business to start in Nevada is also dependent on the location. Fr example, those focusing on export should be located closer to a major transportation hub (Las Vegas) or a Foreign Trade Zone (Clark County). Similarly, there are several other factors to be taken into consideration like:

• Zoning laws
• Property Values
• Reduced excise taxes
• Business Insurance Rates
• Industrial park or center
• Minimum Wage laws
• Opportunity zones
• Enterprise zones
• Government licenses and fees
• State and Local Taxes
• State and Local Business Incentives

• Churchill County
• Clark County
• Douglas County
• Elko County
• Esmeralda County
• Eureka County
• Humboldt County
• Lander County
• Lincoln County
• Lyon County
• Mineral County
• Nye County
• Pershing County
• Storey County
• Washoe County
• White Pine County

7. Register Your Business with the NV SOS

Once you have chosen the right business structure, business name, and location for your business in Nevada, it is time to take the first step towards establishing your business. The best way to doing business in Nevada is by registering it with the Secretary of State (SOS).

• Tax: The Nevada Department of Taxation provides useful resources regarding EIN and existing tax brackets for starting an online business in Nevada.
• Statutes and Regulations: These can help you get information and understand laws pertaining to your business structure. Click Here for Business Laws.
• Restricted Word List: This is a resource that will help you register your business name in Nevada as usage of certain words are restricted.

Form your New Nevada Start-up with Incparadise!

8. Get Your EIN

EIN Number or the Employer Identification Number is a Tax ID number that is issued by the IRS to those doing business in Nevada. It is similar to a social security number except that it is applicable only to businesses. You can apply for an EIN only if you are planning to form a business in Nevada. You can apply for it with the IRS through mail, fax, and online. Some of the important resources that will help you with obtaining the Nevada Tax ID are:

• Department of Taxation FAQs: This is a page focused on helping you obtain EIN to start a business in Nevada. You can download or read through their EIN guide.
• Nevada Tax: If you are unaware of the various applicable taxes for starting an online business in Nevada then visit the Nevada Tax Center. It provides an insight into business taxes and how to manage business tax filings.

We can file EIN on your behalf!

9. Open a Business Bank Account

An important financial aspect of any business is working capital and a bank account is what keeps the capital safe. A bank account is required if you plan to register your business in Nevada. It is easier to open a bank account once you have your Employer Identification Number (EIN).

• It will make recordkeeping of business finances easier
• It will help demarcate business from personal finances
• You will be able to calculate your taxes properly and make necessary payment
• Helps in disbursement of salary
• Helps in tracking business expenses
• Helps in audit prevention
• It adds credibility to any business in Nevada

10. Get a Nevada State Business License

When you start a business in Nevada there are several requirements that the state requires you to fulfill and one such requirement is that of a business license. Every entrepreneur starting a new business needs to know whether their business requires a license, permit, or both. This is an integral part of your Nevada business checklist and you can apply for one along with your business formation documents. Here are some facts:

• A business license or permit can be issued by the Secretary of State or County Clerk
• You may require a single or multiple licenses depending on business activity or industry
• Apart from the state business license, you may also require city or county specific licenses

11. Register with Nevada Department of Taxation

Once you register a business in Nevada the next step is to register with the Nevada Department of Taxation. You can register online and there are no filing fees for same. This registration will help you file your returns annually. You may have to register for the following:

• Sales tax: If you are starting an online business in Nevada that will be concentrating on selling or transferring of tangible personal property then you will be required to collect sales tax from the buyers. This tax has to be filed with the Nevada Department of Taxation.
• Other taxes: Once you register your business in Nevada, depending on the type of business or business activity or revenue generated, you may have to file different taxes like the Commerce Tax and Modified Business Tax.

• Taxpayer Information Packet: This is a detailed document that contains current Nevada tax information and how the tax system works. It also provides an insight into important tax provisions.
• New Registration Guide: This is a concise guidebook for entrepreneurs registering their businesses in Nevada for the first time. The guidebook provides an introduction to online tax and Nevada tax system requirements.
• How to Videos: The Nevada Department of Taxation has uploaded several informative videos that will help you in understanding the Nevada tax structure and tax filing as required for doing business in Nevada.

Why set up an LLC in Nevada?

In an economically strong state like Nevada, new and existing businesses will be able to enjoy growth and long-term stability. This is possible due to several factors that have a positive impact on the overall business climate as well as businesses. If you are planning to set up an LLC in Nevada then some of the factors acting as a stimulant to growth includes strong infrastructural support in the form of airports, interstate, and railroad.

Advantages of registering LLC in Nevada

Why would you start Nevada LLC if the state did not offer any advantages or benefits for businesses? Indeed, businesses can discover several advantages including state supported programs that have been created to ensure a business can derive maximum benefit. Some of the primary advantages include:

• Tax Benefits: When you incorporate a Nevada LLC, your business will be able to benefit from the fact that there are almost “no state level taxes”. The state doesn’t levy any corporate income tax, personal income tax, admissions tax, unitary tax, gift tax, and franchise tax.
• Asset Protection: A start-up or small business in Nevada has the advantage of the Significant Asset Protection Policies the state and business laws provide.
• Incentive Programs: There are several programs implemented by the state and a business can qualify after you register Nevada LLC. These programs offer loans, grants, tax abatement, tax credits, and employee hiring incentives.

How long does it take to incorporate an LLC in Nevada?

In order to set up an LLC in Nevada, you will be required to file LLC formation documents, which are separate for domestic and foreign business entities. Once filed with the Nevada Secretary of State, the processing time for Nevada LLC or corporation can vary from 10 to 30 business days.

Nevada LLC Forms and Fees for registration

If you are planning to start a Nevada LLC and are wondering whether the entire process be expensive then we have just the right plan for you!

• State fee for Articles of Organization: $75
• State fee for a stamped copy of Articles of Organization: $30
• Our Service Fee: $89

IncParadise LLC fee includes services like:

• Checking name availability
• Preparing state-approved Articles
• Filing Articles with state
• Sending Articles or Certificate of formation to you

Initial list & Business license

The initial list has to be submitted along with the articles of organization. Our fee is $395, which includes:

• State Fee for Nevada LLC Initial List of Members-Managers: $150
• State Fee for Nevada LLC Business License: $200
• Our Processing fee: $45

Delivery of Articles

You can start Nevada LLC or make it operational once you receive the articles of organization. The articles can be delivered in the following ways:

• USPS: Free
• Email Shipping: Free
• USPS Express Overnight: $30.50
• USPS Express International: $74.25

Certificate of Good Standing

In order to start Nevada LLC, you will require a certificate of good standing also known as a certificate of existence and it is issued by the Nevada Secretary of State.

• IncParadise fee for Certificate of Good Standing: $70
• Fee for Expedited Certificate of Good Standing: $150

Other formation documents and services

We understand that it is never easy to incorporate an LLC in Nevada or set up a new business and hence, we are here to provide all the necessary support and services. Some of the other document filings and services offered by us include:

• Nevada Apostille Regular: $94 (This filing takes 2-4 weeks)
• Nevada Apostille Expedited: $294 (Filing takes 1-2 business days)
• LLC Organizational Meeting/Company Minutes: $20
• LLC Kit with Shipping: $98

Nevada Address and Mail Forwarding

We have several plans to choose from depending on specific business requirements. The plans are:

• Basic Mail Forwarding Plan: $129
• Moderate-use Mail Forwarding Plan: $180
• High-use Mail Forwarding Plan: $280
• Monthly Virtual Office Plan: $105
• Monthly Virtual Office Plan with Shared Desk: $180
• Annual Virtual Office Plan: $570

Note: Additional state payment processing fees may be included in the prices above.

Which Plan would you choose for Your LLC in Nevada?

ORDER NEVADA LLC

How IncParadise helps you to start an LLC in Nevada?

You can form a small start-up, incorporate it as an LLC in Nevada, register a foreign entity or convert your existing business in another state to a Nevada entity. All this is possible with proper guidance and assistance provided by IncParadise towards filing relevant forms with the Secretary of State and Department of Taxation.

• Helping you choose a business name pursuant to NV Rev Stat § 86.171 (2013)
• Providing assistance in reserving business name for 90 days
• Providing information related to required and optional provisions and information for filing of Articles of organization pursuant to NV Rev Stat § 86.161 (2013)
• Ensuring all filing requirements as specified by NV Rev Stat § 86.151 (2013) are met in order to register Nevada LLC
• Aiding in filing and processing of all applications including Registered Agent Order Form and Operating Agreement
• Providing information pertaining to taxes to be paid in the state and if required, assist with filing application for tax identification number.
• Helping you to identify the type of business and ensure you obtain the correct business license.