Rose Redman No Comments

How to Get a Certificate of Incumbency

A certificate of incumbency, also sometimes referred to as a statement of incumbency or incumbency certificate, is an official document that may include the following information:

  • When and where the company was formed, as well as the state file number
  • Registered Agent details for the company
  • Names and titles of company officials
  • Shareholder names, titles, and stock ownership details
  • Status in the jurisdiction of formation

 Most often, corporations and LLCs secure them on an as needed basis for third parties who require formal documentation verifying corporate information. For example, a bank may want to verify officer and director information as part of the loan application process.

 

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How to secure a certificate of incumbency

The process is quite simple. The organization reaches out to its registered agent with the proper documentation that the registered agent can use to pull necessary information. That documentation can be an annual report filing or an internal document showing officers and directors such as minutes, bylaws, resolutions, etc. From there, the registered agent can typically turn back the certificate of incumbency within a day.

Many times, a certificate of good standing from the jurisdiction of record is also obtained and attached as further proof. The document is then notarized and delivered to the requesting institution.

Keep in mind that a new certificate of incumbency is required for each legally binding transaction. And as long as we’re your registered agent, we’ll be able to handle certificates of incumbency whenever you need. 

Need a certificate of incumbency? 

Incserv is here to help! Contact us at 800-346-4646 or via our contact form.

Gennine Cooper No Comments

April 16th – Emancipation Day

All District of Columbia government offices are closed on Friday, April 16th  in observance of Emancipation Day. Although our Washington, DC office will be open during regular business hours, DC specific services are limited.

The following District services will be available: UCC searches with copy retrieval, corporate status searches and name availability.

The following District services will not be available: corporate filings, document retrievals, business license services, UCC filings, apostilles and notary certifications.

Federal Agency and Foreign Embassy services are not affected by this closing.

District offices will resume normal business hours on Monday, April 19th.

If you have questions or concerns, please contact our Washington, DC office at 202.386.7575, 877.531.1131 or dcorders@incserv.com.

 

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Gennine Cooper No Comments

Good Friday – April 2, 2021

On Friday, April 2, 2021, some jurisdictions will be closed in observance of Good Friday. However, Incserv is open and will be available between the hours of 8:30 AM – 5:00 PM (ET).

Incserv has electronic access to many jurisdictions and will be able to perform electronic searches, filings and document retrievals, as such access allows.

If you have any questions or concerns, please contact our office at 302.531.0855, 800.346.4646 or orders@incserv.com.

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Rose Redman No Comments

How (And When) to Pay Your Delaware Franchise Tax

Incorporating a business in Delaware has many advantages. Most articles on the web point to tax advantages, but there’s more to it than that. Companies appreciate the state’s effort to keep the “Delaware corporation statute modern and up-to-date” and the “quality of Delaware courts and judges.” As a result, the Delaware Secretary of State imposes an annual tax for the privilege of incorporating in the state. This tax is known as the Delaware Franchise Tax and it accounts for about a third of the state’s annual revenue. 

Learn more about Delaware franchise tax meeting delaware

Delaware Franchise Tax Basics

The Delaware Franchise Tax must be paid annually by any business legally incorporated in the state. Deadlines and calculated amounts differ by entity type: 

  • For Delaware corporations, the tax is due on March 1. The minimum tax amount is $175. The maximum tax amount is $200,000. The actual amount owed is determined by a company’s stock structure. The more shares a company is authorized to issue, the higher their calculated Delaware Franchise Tax. Delaware corporations must also submit an annual report at the expense of $50. 
  • For LLCs, LPs & General Partnerships, the Delaware Franchise Tax a flat tax of $300 is due on June 1 of each year. An annual report is not currently required.
  • For Foreign Corporations, which are defined as companies registered in any state but doing business in Delaware, a Delaware Franchise Tax of $50 plus an annual report is due on June 30.
  • For non-profit organizations registered in Delaware, the Delaware Franchise Tax is due on March 1 in the amount of $25. An annual report is required as well. 

Side note: the annual reports referenced above typically include the company’s address, phone number, general stock and financial information, the name and address of at least one officer and the names and addresses of all directors. 

How Do Companies Pay Their Delaware Franchise Tax? 

Taking care of headaches like paying the Delaware Franchise Tax is something we love doing for our clients. You can get started with our Franchise Tax Order Form, or, feel free to give us a call at 800-346-4646. /end-sales-pitch.

What Happens if you Forget to Pay Your Delaware Franchise Tax?

Businesses that forget to pay their Delaware Franchise Taxes can run afoul in a few different ways. Failing to file by your assigned deadline means your business falls out of good standing. The state will assess a $200 penalty. Interest at the rate 1.5% is accrued monthly, on the 6th of each month. If a business fails to file and pay their Delaware Franchise Tax for two consecutive years, they are declared void. They’ll incur more fees and be forced to pay an additional renewal filing to get back in good standing with the state. 

As always, the contents of this article should not be considered legal or financial advice. Have more questions about independent managers? We’re here to help.

Gennine Cooper No Comments

Registered Agent: Why Do I Need It?

In a world where budgeting and cutting costs is almost crucial for people to make ends meet, cutting the $40 cable bill and replacing it with the $11 Netflix bill is just one of the many ways people are revamping their budget to ensure they are not living paycheck to paycheck. Business owners are not alone and often have to make these types of decisions for their businesses. One question that frequents our office is, “Do I have to have a registered agent? ”

Why Do I Need a Registered Agent?

In short, if you do not have a physical presence in the state you are conducting business then you are required by law to have a registered agent in most states. The states need a way of contacting you for business matters such as tax notices, legal documents, and service of process (SOP). Although this is the most common reason to have a registered agent, it is not the only reason. Some companies require a registered agent due to the infrastructure set up. Other times companies will appoint an agent so that process servers are not showing up at the place of business to serve the company an official notice of a lawsuit. No matter the reason you have an agent, Incorporating Services is equipped to represent your company in all 50 states, the District of Columbia, and in most international locations.

What Does a Registered Agent Do?

A registered agent is an entity or individual named with the governing office to accept SOP, governmental mail, annual reports, and tax documents from the jurisdiction on behalf of the company. The latter are just some of the basic services a registered agent can provide. Incorporating Services offers enhanced services such as our Annual Report Filing Service (ARFS) where we proactively compile and maintain the necessary information to prepare, file, and make payments regarding your annual reports; Mail Forwarding, forwarding mail outside of what the registered agent typically sends out; and, Virtual Office, providing your business with a commercial business address and unique suite number so that you can conduct business from anywhere. These enhanced services help to keep your company in compliance and eliminates worries.

Why is Having a Registered Agent So Important?

The state needs to know that businesses have a contact person at a physical location (not a P.O. Box) to contact regarding any of the aforementioned notices/documents. If a registered agent is not appointed or maintained, state can take action to administratively dissolve or cancel your company for failure to appoint a registered agent. Once that action is taken, the result renders your company unable to legally conduct business until brought back into good standing. Additionally, time-sensitive material requires immediate attention. A professional registered agent allows you to focus on your clients while we handle the critical paperwork. Furthermore, having an agent separate from your business address protects your business’ image; being served notice of litigation at the business’ physical location can be detrimental to the client/business relationship.

Can I Be My Own Registered Agent?

In most states, so long as you have a physical address (not a P.O. Box) in that state, and are available during normal business hours (Monday through Friday), you can be your own registered agent. However, this leaves you solely responsible for obtaining and maintaining your company’s compliance. With Incorporating Services’ many locations, enhanced services, and dedication to you and your company, we are equipped to handle the formalities so you can focus on your customers.

Amanda Archambault, Registered Agent Associate

 

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