Delaware LLC Annual Report – File an LLC Annual Report in Delaware


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The objective of the annual report is three-fold. The annual report keeps the Government informed about all the updates, communicates about all the modifications or changes, & keeps the LLC members informed about the necessary taxes and costs. This article has all the information about Delaware LLC annual report filing in Delaware.

An annual report can be called an address book, as it features all the relevant addresses of the company & the members. This yearly report is a record of all the company’s activities in an entire year. It is also referred to as the Annual Franchise Tax Report because it helps in filing the franchise tax.

Contents of the Annual Report

Typically the annual report filed by a Delaware LLC (or any other business entity for that matter) will include all the information related to its business & members. The standard contents of the annual report  or the annual franchise tax report are

  • Office Address of the LLC
  • Names & Addresses of the Members & managers.
  • Identification Documents
  • Social Security numbers of the key members of LLC
  • The objective of the business of LLC
  • List of all the signatories of the LLC
  • Information of the registered agent, if any

Delaware LLC Annual Report

An annual report filing is a mandatory requirement for all LLCs. It ensures that all the information provided by the LLC is accurate & updated. This information is essential for the State officials to ensure that all the companies pay taxes.

In Delaware, the LLC Annual report is called “the Annual Franchise Tax Report.” This Franchise Tax report is filed with the office of the Delaware  Secretary of State.

Does the State of Delaware Require an Annual Report Filing?

The State of Delaware does not have any Initial Report Requirements. But, it is mandatory to file the Delaware annual report (known as the Annual Franchise Tax Report) with the Delaware  Secretary of State. 

All the legal entities such as C Corporations, Limited Partnerships, Limited Liability Companies are bound to file the Annual Franchise Tax report along with the Franchise Tax.

Annual Report Deadline

The Annual Franchise Tax Report must be filed by June 1 each year. Every LLC is bound by this rule & non-filing, or late-filing can have serious consequences.

Penalties for Non-filing or late filing

Filing the Annual Franchise Tax report is essential for every type of entity in the State of Delaware, so much so that there can be penalties for non-filing the Annual Franchise Tax Report. The non-filing penalty or the late filing penalties of the annual report is $200, plus there will be 1.5% interest levied in every month of non-filing.

Why Do LLCs Have to File the Annual Report?

Some of the states are not required to file this yearly report, commonly known as the Annual Report. However, there are some reasons why states should file an LLC Annual Report. Here are some reasons,

To Maintain the Accuracy of the Information

An annual report filed by the LLC has all the updated information about its official addresses & the names or addresses of all its officials. This updated information allows the State authorities to track down any LLC when communicating.

To provide the Correct Correspondence

Many times, any creditor or other entity willing to transact with the LLC requires the correct correspondence address. If this information (which can only be modified with the help of an annual report) is not updated every year, such entities will not be able to communicate with them.

To Notify the Government About All the Significant Changes

If you have changed your main business address or had new business appointments of managers or members, the annual public information report notifies the State Government Entities about it. So, the next time someone questions a newer reform that you have introduced in your LLC, you will be saved because you had submitted the information with the Government.

To Provide an Activity Log of an LLC

The Annual Report is like an activity log of the LLC. It brings on record; all the transactions, new associations, appointments, etc. & keeps those records intact for all future references.

To Help You With the One-time Filing of Taxes

The annual report is an excellent means to keep you on your toes in case of your dues payment. Every LLC must pay the taxes through the annual report filing. By filing the report on time, the LLC can manage the exemptions & can avoid penalties imposed by the Government. 

To Enable the State to Track the Payments

The government authorities use all the information filed through the annual report, for tracking the payment of State Taxes.

How to file a Delaware LLC Annual report

Delaware LLC Annual Franchise report can only be filed online. The Annual Franchise Tax Report must be filed by June 1 each year.

Steps to File Delaware LLC Annual Franchise Report Online

Time needed: 5 minutes.

Here are the steps to file LLC Annual Franchise Report in Delaware online.

  1. Visit the Delaware Government Site

    Your first step to filing an Annual Franchise Report in Delaware is to visit the Delaware Government site.delaware-llc-annual-report

  2. Click on the Services Tab

    You will see the Services tab on the main page of the Delaware Government’s site. Click on that to proceed further with the filing of the Annual Franchise Report.

  3. Select File Annual Report from the Drop-down menu

    When you click on the services tab, you will see a drop-down menu, select the File Annual Report option from that list.

  4. Click on the “click here to pay taxes/ File Annual report” link.

    As soon as you click on the File Annual Report link, a new page will open. Click on the “click here to pay taxes/ File Annual reportdelaware-llc-annual-report

  5. Enter your seven-digit Business Entity File Number

    In the search box given below the file number entry, type your seven-digit Business Entity File Number. If you had left an incomplete session earlier, you can put that session’s saved session ID to continue from where you left.delaware-llc-annual-report

  6. File the Annual Franchise Tax Report

    Once you enter the Entity number, you will get the option of filing the Annual Franchise Tax Report with the Franchise Tax and filing fees. Fill up the accurate information & fees, calculate the taxes & submit the report online.

Delaware LLC Annual Franchise Tax Report (Domestic & Foreign)

State Office:Division of Corporations, John G. Townsend Bld, 401,  Federal Street, – Suite 4, Dover, DE 19901.
Link to Website
Due Date:June 1st every year.
Filing Fee:The Annual Franchise Tax Report filing fee in Delaware is $300
Penalty:The non-filing penalty or the late filing penalties of the annual report is $200, plus there will be 1.5% interest levied in every month of non-filing.
Filing Method:An LLC can file the Annual Franchise report Online only.
Forms:Since the only filing method available for an LLC to file the annual franchise report is online, there is no link to download the forms to file the Annual Franchise Tax.
Important Information:Once a Domestic or Foreign Delaware  Limited Liability Company submits the Annual Franchise Report along with the prescribed taxes to the Delaware Division of Corporation, the Annual Report filing will be complete.

Seek the Help of a Registered Agent

Every State will have a different rule for filing the Annual Report. Usually, it is submitted every year, but it is submitted once in two years in some states. Some states require the filing of the report only once in ten years.

Not only the timing, the mode of filing, the proper addresses, exemptions, legality, annual report compliance, etc., have to be taken care of while paying the taxes or filing any reports with the State authorities. In many such scenarios, it is advised that an LLC appoints a Registered Agent to manage all this. Check out the best LLC service that offers all the services at an affordable price. An experienced agent is required for:

  1. Streamlining the mandatory processes & filing.
  2. Sending or receiving any documents.
  3. Reminding you about important dates of filing or payment of taxes. 
  4. Simplifying the filing procedures.
  5. Avoid any penalties.
  6. Flexibility in working.
  7. Maintaining Privacy (as it keeps your personal records off the public record)

You can read more about a Delaware Registered Agent here.

How Fast Can I Fill Delaware LLC Annual Report

Deadline for filing the annual report for Delaware LLC is on or before June 1 every year. Penalty of $300 is imposed if you fail to file annual report.

Filing an annual report is a vital part of running a successful LLC. The process of filling a Delaware LLC annual report requires several key steps. One of these steps is determining if the business name you plan to use is available. You can do this by using the State of Delaware’s website. Then, submit the completed form to the Division of Corporations with a cover memo and a $75 filing fee.

First, you must find your Delaware LLC’s Business Entity File Number (BEF) number. You can find this number on the state’s business database. You will also need information about the company’s franchise tax and director/officer information. Finally, you must pay the annual report fee using a credit card or electronic check.

The filing process for a Delaware LLC annual report is relatively easy and can be done online through the Division of Corporations’ portal. You should be aware, however, that not all entities are required to file an annual report. In addition, an LLC is not required to pay entity tax. In addition, an LLC can’t change its registered agent. For that, it must file a Certificate of Change of Agent Form. If you want to amend the certificate, you should also file an Articles of Amendment.

You can fill a Delaware LLC annual report online by visiting the Division of Corporations website or by faxing or mailing the completed forms. Depending on the method you choose, filing can take three to four business days. The fees for a Delaware LLC certificate of formation are $90. However, you should keep in mind that some cities and counties may require a separate business license. Therefore, it is best to check with your local government agency for details.

If you have employees, you must register with the state’s employment authority. You may also need to register for Unemployment Insurance or Workers Compensation Insurance. You should consider using a business license compliance package. Using this service can save you time and money and ensure the proper licensing process.

The filing deadline for the Delaware LLC annual report is June 1 of every year. Failure to file a Delaware LLC annual report can have disastrous consequences on your business. Not only will your LLC’s annual report be filed late, but the state could also require you to file additional paperwork, which could cost you another $169 or $200.

In addition to the annual report, a Delaware LLC must include information about its directors. The annual report must list the names and addresses of each director and officer. The information in the annual report must be current at the time of filing. If you have any questions about the filing process, contact the Secretary of State’s office.

The Delaware Secretary of State can revoke an LLC’s charter if it has failed to file an annual report. The first stage is known as the “X” status, and after two years the status changes to “Void.” Companies in this status must file annual reports to be reinstated.

FAQs

Is it essential to file an Annual Report?

Yes, an annual report is essential for every business entity in most states. Some states also ask to file biennial or decennial reports to be filed.

What are the contents of the Annual Report?

A Yearly Business Report or the annual report typically incorporates the address of the business, names & addresses of the members, a list of all the signatories, SSN of the members, & details of the registered agent.

Why is hiring a Registered Agent necessary in filing the Annual Report?

A Registered Agent is well-aware of all the filing requirements, annual report filing fee, & overall Annual Report compliance. The knowledge & proficiency of the registered agent allows the smooth filing of reports & other fees.

What do I have to do for the annual business report preparation?

The most important thing for filing an Annual Report is record keeping. Make sure that you document every other transaction well.

Do the filing fees change as per the types of companies?

Yes, the fees may vary depending on the type of entity or the type of legal entity you are representing.

In Conclusion

In conclusion, we can see that the annual report – which is also called the Franchise Tax Public Information Report is much easy to be filed. However, it is mandatory to file the report on time to avoid any penalties. If you are running an LLC in the state of Delaware, you have to comply with the filing of certain important documents including the annual report or the Franchise Tax Public Information Report as it is named in the state of Delaware.

It is also important to note that once this Public Information Report is filed with the Comptroller of Public Accounts, there is no need for additional filing with the secretary of state.

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