When you have a business, it’s vital that you keep a close eye on the calendar. No matter what type of business you run, you need to be on top of your legal requirements to stay in good standing, including your annual report filing. To that end, Delaware corporations should be getting ready for the upcoming Delaware annual report due date.
An annual report essentially updates state governing bodies with a summary of everything your company has been doing all year. The exact requirements tend to fluctuate from state to state. For businesses with a Delaware annual report filing, the deadline is March 1, 2020. So you still have plenty of time to get your affairs in order and file the necessary paperwork with the Delaware Secretary of State.
But let’s run through the basics of what you need to know.
What You Need for Your Delaware Annual Report
All active domestic corporations are required to file an annual report in Delaware by March 1.
This document keeps your state of incorporation in the loop about the latest updates at your company or simply confirms whether key points have remained the same.
In order to meet all the applicable criteria, your annual report may include a variety of parts, such as the following:
- Names and addresses of directors/managing members
- The company’s head office address
- A mission statement declaring your business’s purpose
- Registered agent’s name and contact information
- Any and all identification numbers for your business
The general layout for your annual report tends to include a few customary sections, such as:
- The executive summary, providing a one-page overall look at your company’s health
- A letter from the chairman or board of directors which speaks to the company’s state
- An opportunities section, outlining upcoming plans for expansion or other growth
- A risks section addressing the potential issues or threats to your company
Depending on the nature of your business, you may also need to include financial and other business reports. After all, such documentation proves very useful in attracting investors, assuaging stakeholders and contextualizing your company’s performance for the management. Financial reports may be laid out in a variety of ways, but these are a few of the most common.
- A balance sheet featuring a breakdown of assets, liabilities and other financial highlights
- A profit and loss statement that includes details on income, outgoing funds, revenue, expenses and — of course — profits
- Stock information, such as number and value of shares
- Projections and forecasts to provide a glimpse into what the future may hold for your company, often in regard to revenue and profits
Also of note is that Delaware corporations are required to pay a Franchise Tax Fee. The Division of Corporations website has instructions on how to calculate your franchise fees.
If you have a domestic or foreign LLC, Limited Partnership or General Partnership in Delaware, you are required to pay an annual tax of $300, but there is no requirement to file an annual report. This fee is due on or before June 1.
How to File Your Delaware Annual Report
Thankfully, filing your annual report is a lot easier than assembling all the parts you’ll need to meet your business requirements. All you need to do is visit the Delaware Division of Corporations website, where you can file your annual report online instantly. You will have to pay a minimal filing fee to do so, ranging from $25 to $50. But in no time at all, your business will be well on its way to meeting all the requirements.
As we mentioned, the deadline for Delaware corporations is March 1. And we highly encourage you to ensure that you’re able to have your annual report ready to file by that date. Filing times may vary. So you don’t want to wait until the last minute if you’re hoping to avoid the possibility of late filing fees.
If you fail to file an annual report, you can face a number of consequences, all of which can harm the long-term viability of your company. You might face an obstacle as simple as late fees or one as catastrophic as an involuntary dissolution of your corporation.
Your best bet, rather than to tempt fate, is to simply stay on top of your annual report filing in the first place. Once you do file your report, you’ll have the peace of mind to continue looking toward your next goal.
Get Help with Filing Your Report
Balancing such administrative requirements as your annual report filings with the day-to-day running of your business can be incredibly tricky. That’s why our goal at Incfile is to alleviate much of the stress and time involved in keeping your business in top shape. We provide small business owners with our extensive pool of resources and give them the expert assistance they need to stay on target with their short-term and long-term goals.
Of course, filing your annual report is a key element in ensuring your company stays afloat and growing. Instead of having to wade through the requirements yourself, we’ll tackle the necessary paperwork for you. As we’ve discussed, Delaware businesses are facing their annual report due date. So time is of the essence. If you think you might need assistance in getting your report ready, reach out to Incfile today!