Small Business Reading Room

Friday, December 14, 2012

Year end preperations for your Delaware Company

It's hard to believe that another year has almost passed. If you are like most business owners, then you have had your hands full with running things from day to day. Sometimes we get caught up in moment and forget to take time out to plan for the coming year. While it's common knowledge that entities electing or required to be taxed on a calendar year generally have to wrap their accounting matters up by Dec. 31st, there are also some other very good reasons why you should also slow down and take a look at the year ahead. When it comes to your Delaware entity, planning sooner can be better than later. Especially before the calendar turns the page to the New Year!  Here are a few:

1. Maintain your Corporate Compliance

Does this really mean you? If you have incorporated, then yes, you do have compliance responsibilities! They range from holding annual shareholder meetings for corporations, to having an operating agreement for a LLC. Let's not forget keeping your contact information current with your Delaware Registered Agent too. They are all small things that add up. And before you start to worry, there are all kinds of tools you can use to help you maintain a corporate liability shield and your good standing in Delaware. Why risk everything?  Company kits help your corporate paperwork stay organized and all in one place and our Corporate Healthcheck program is a service designed to help make corporate compliance easy. Both of these are affordable options to help your business stay on top of some compliance issues, and can assist you in maintaining a separation between your personal assets from your business liabilities and vice versa.

2. Winding up business and paying Delaware Franchise taxes

Business owners often make the mistake of thinking that they can walk away from their company without having to officially dissolve or cancel it with the Delaware Division of Corporation. While there may be some instances where it is appropriate to let a company 'die on the vine' so to speak, we wouldn't recommend doing so without first consulting an attorney familiar with your business and Delaware law.  It can be much less expensive to simply make the required filing to terminate your entity's existence and start the clock ticking on the statute of limitations. Doing so before the start of the New Year will save you some money on the 2013 franchise tax assessment.

If you are terminating your company, Delaware requires a filing to be made with the Division of Corporations to officially cancel or dissolve your company in the State of Delaware.  The 2012 tax will still be due at the point of terminating the company, however, you'll avoid being assessed the 2013 tax if you officially terminate the company with the Delaware Division of Corporations by December 31, 2012.  This process is relatively fast and in many cases it is easy. Why not let us help you have the assurance your company is officially closed in Delaware?

3. Consolidate to save money

As a Delaware commercial registered agent, it is our goal to provide you with the best service for the best value. That's not just talk- it's part of our mission! If you have other Delaware companies that you would like to change to our service, we will pay the State filing fee for the certificate of change of agent.  Contact us to find out how having all of your entities under the management of Delaware Intercorp, Inc. can help you save! 

So before you sprint to the end of the year, make sure you slow down enough to give yourself a great gift and spend a little time doing some year end planning for your Delaware Corporation or Delaware LLC. You'll be glad you did!

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Delaware Intercorp, Inc.
113 Barksdale Professional center
Newark, DE 19711-3258

"For all the best reasons to incorporate,the best place
is Delaware and the best incorporator is
Delaware Intercorp!"

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