After you have formed a Delaware entity, there are numerous in-house tasks to tackle. Establishing a budget and determining the annual expenses for the entity could be at the top of your To Do list. By determining the yearly costs associated with the business early on, you can avoid the surprise of discovering unknown fees later.
It is pretty simple for entities formed in the state of Delaware, because there are only two fees that are required to be paid each year.
The first fee is the annual Franchise Tax, which is imposed upon every Delaware company by the state of Delaware. The amount that is due and when it is due is dependent on the type of entity you have formed.
The second fee is the annual Registered Agent Fee, which is our fee for acting as the Registered Agent for your entity in the state of Delaware. We are the lowest priced Registered Agent in the state, and only charge $50 per year for this service. We also give you a full year of Registered Agent service, and invoice on the 28th day of the anniversary month of the entity. For example, if the entity is formed on April 1, then the $50 fee is due by April 28 every year. Once you have made the payment, the fee will not be due again until April 28 of the following year. Some agents only extend the service through December and then bill you a second time. Again, we will provide you with notification a couple of months prior to the due date via regular mail and email regarding this annual fee.
When the time comes, both of these annual fees can be paid via our Client Center.
Now you know what annual expenses will be payable in Delaware for your entity. Best of luck!
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.