You'll need to budget at least $89 to file your Certificate of Incorporation in Delaware, but that's just the starting point, as additional fees for services like obtaining a federal tax ID number, business licenses, and permits will add to your overall incorporation cost. You'll also need to consider ongoing annual franchise taxes, which range from $175 to $200,000, depending on your corporation's specifics. And don't forget about registered agent service costs, business license and permit fees, and annual report filing requirements. There's more to incorporating in Delaware than just the initial filing fee, and exploring these costs will help you better prepare for your business's future.
Delaware Incorporation Filing Fees
When forming a corporation in Delaware, you'll need to pay various filing fees, which can add up quickly, so it's essential to factor them into your startup costs. The initial filing fee for incorporating in Delaware is $89, which includes the cost of filing your Certificate of Incorporation. This document outlines the basic information about your corporation, such as its name, address, and purpose.
In addition to this fee, you'll also need to pay for a registered agent, who will serve as the point of contact for your corporation. The cost of a registered agent can vary, but you can expect to pay around $50 to $300 per year, depending on the service provider you choose.
You may also need to pay for additional services, such as obtaining a federal tax ID number or obtaining any necessary business licenses and permits. These costs can vary depending on the specific requirements of your business and the state of Delaware. By understanding these filing fees, you can better plan your startup costs and ensure a smooth incorporation process.
Ongoing Annual Franchise Taxes
As a Delaware corporation, you'll need to pay annual franchise taxes, which can range from $175 to $200,000, depending on your company's authorized shares and par value. This tax is required to maintain your corporation's good standing in Delaware.
To calculate your franchise tax, you'll need to consider the following factors:
- The number of authorized shares your corporation is allowed to issue
- The par value of each share
- The type of corporation you have (e.g., close corporation, public benefit corporation, etc.)
Here are some key points to keep in mind:
- You'll need to file an annual franchise tax report with the Delaware Secretary of State by March 1st each year
- Failure to pay franchise taxes can result in penalties and even revocation of your corporation's charter
- You may need to pay additional fees for services like filing and document preparation
- Consult with an attorney or accountant to ensure you're meeting your franchise tax obligations
Registered Agent Service Costs
You'll need to budget for registered agent service costs, which can range from $50 to $300 per year, depending on the provider and services offered. As a Delaware corporation, you're required to have a registered agent who can receive legal documents and other important notices on your behalf. This service ensures you're always informed and compliant with state regulations.
When choosing a registered agent service, consider the level of support and features you need. Basic services might include only the required registered agent duties, while more comprehensive plans might offer additional benefits like compliance alerts, document storage, and access to legal documents.
Be wary of extremely low prices, as they might not provide the level of service you need. On the other hand, you don't need to break the bank for premium services. Look for a provider that offers a balance of price and service quality. By budgeting for registered agent service costs, you'll ensure your Delaware corporation stays compliant and avoids unnecessary penalties.
Business License and Permit Fees
Your Delaware corporation will need to obtain necessary licenses and permits, which come with associated fees that vary depending on the type of business and its location. These licenses and permits ensure that your business is operating legally and safely.
Some of the licenses and permits you may need to obtain include:
- Business License: This is a general license required for all businesses operating in Delaware. The fee is currently $75 per year.
- Sales Tax Permit: If your business sells tangible goods or services, you'll need a sales tax permit. The fee is currently $75.
- Zoning Permit: This permit ensures your business is operating in a zoned area. Fees vary depending on the location and type of business.
- Health Department Permit: If your business involves food handling or preparation, you'll need a health department permit. Fees vary depending on the type of business and location.
Remember to research the specific licenses and permits required for your business, as they may vary depending on your industry and location.
Annual Report Filing Requirements
Delaware requires corporations to file an annual report with the Secretary of State, which involves paying a $50 fee and submitting the report by the corporation's anniversary date. This report ensures that your corporation remains in good standing with the state.
Here's a breakdown of the annual report filing requirements:
| Requirement | Detail |
|---|---|
| Filing Fee | $50 |
| Filing Deadline | Corporation's anniversary date |
| Filing Method | Online or by mail |
| Information Required | Corporation's name, address, and officer information |
| Late Filing Penalty | $125 (in addition to the $50 fee) |
You'll need to file your annual report on time to avoid late penalties and maintain your corporation's good standing. Remember to mark your calendar with your corporation's anniversary date to ensure you don't miss the deadline.
Conclusion
You've made it! You now know the costs associated with incorporating in Delaware. To recap, you'll need to pay $89 to file your articles of incorporation, $300 in annual franchise taxes, $50 to $300 for a registered agent, and varying business license and permit fees. Additionally, you'll need to file an annual report. By planning for these expenses, you'll be well on your way to successfully incorporating your business in Delaware.