With a Delaware company, you may find that you receive several payment requests from your Registered Agent for different services, and it may not be clear what those services are. This blog helps clarify what those invoices are for. There are two types of payments that need to be made each year.
State of Delaware Annual Franchise Tax: Each company is required to pay an annual franchise tax to the State of Delaware. Each year, you will receive a notice from your Registered Agent on behalf of the Delaware informing you of the tax payment requirement.
CORPORATION: Due on or before March 1st of each year, and also requires and annual report to be filed. You will receive this notice from our office mid-end of December each year.
LLC/LP: Due on or before June 1st of each year. You will receive this notice from your Registered Agent mid-end of April each year.
For more information, see our blog on Delaware franchise tax payments. Click here.
Delaware Statutory Registered Agent: This is the service fee to represent the company as the Registered Agent in Delaware. This is billed annually; typically renewing on the date of our appointment. Every company formed or qualified within most States are required to appoint a Registered Agent with the Secretary of State. A Registered Agent is the company or individual named to receive Service of Process and all official notices from the jurisdiction on behalf of the company.
For more information on the role of the Registered Agent, see our blog.
There are a few ways to simplify this process and reduce the number of invoices you receive.
- If you have multiple entities, synch all your entities to the same date. Rather than receive invoices on the anniversary of the appointment, which could be scattered throughout the year, synch these invoices to one date (e.g. January 1). Or, you could synch the invoices to be received around the same time as your annual tax notice.
- Sign up for our Annual Report Filing Services (ARFS). With this service, for a small annual fee, we will make sure your tax payment is made. To learn more about this service click here.
Amy Balke, Accounting Manager