Delaware compliance for coaching academies

For coaching academies operating in Delaware, several compliance items are crucial. Entity formation and maintenance: Corporations must file an Annual Report and pay franchise tax by March 1 each year.

LP/LLC/GP entities formed in Delaware do not file an Annual Report but must pay an annual tax of $300 due on or before June 1 annually. Penalties ($200) and interest (1.5% per month) apply for late payment.

A Registered Agent must be on file, as notices are sent to them. Franchise/annual tax specifics and penalties: For corporations, minimum tax and calculation methods are detailed on the Division of Corporations site; late filing incurs a $200 penalty and 1.5% interest per month.

Foreign corporations have a June 30 annual report deadline. For LLCs/LPs/GPs, the annual $300 tax is due June 1, with a $200 penalty for non-payment/late payment and 1.5% interest per month.

State tax registration and gross receipts: Businesses should use the Division of Revenue and the OneStop portal to register with the Division of Revenue, Division of Unemployment Insurance, and the Office of Workers’ Compensation.

The Division of Revenue site offers business taxpayer services, including gross receipts tax information and online filing. Delaware does not have a general state sales tax.

Employer obligations: Employers should register via Delaware OneStop for unemployment insurance and workers’ compensation accounts. The Delaware Paid Leave program will be effective January 1, 2026, requiring participation from businesses with 10 or more employees.

Professional licensing and scope of practice: The Division of Professional Regulation (DPR) manages professional licensing. Coaching is generally not a licensed profession.

However, if coaching services involve psychological or clinical work, or cross into therapy or treatment, licensing requirements or telehealth registration rules for regulated professions (like counselors, therapists, social workers, and health-care providers) could be triggered.

It is advisable to check DPR boards and relevant statutes in such cases. Operational and practical compliance items: - Registered agent: All Delaware entities must have a registered agent on file to receive official notices. - Local licenses/municipal permits: Some cities, such as Wilmington, Newark, and Dover, may require local business licenses or permits.

Businesses should check municipal websites and the OneStop portal for local registration needs. - Consumer protection/advertising/refund rules: Even without a specific state coaching license, consumer protection rules and advertising standards apply.

Coaching academies should maintain clear terms of service, cancellation/refund policies, and transparent marketing. - Insurance: General liability and professional liability/Errors & Omissions (E&O) insurance are recommended for risk management, though not state-mandated.

Next recommended research steps include confirming if specific training programs qualify as private postsecondary/vocational schools, reviewing municipal business license pages for physical locations, and confirming multi-state payroll/tax obligations if employing staff or contractors in other states.

For coaching academies operating in Delaware, several compliance items are crucial. Entity formation and maintenance: Corporations must file an Annual Report and pay franchise tax by March 1 each year.

LP/LLC/GP entities formed in Delaware do not file an Annual Report but must pay an annual tax of $300 due on or before June 1 annually. Penalties ($200) and interest (1.5% per month) apply for late payment.

A Registered Agent must be on file, as notices are sent to them. Franchise/annual tax specifics and penalties: For corporations, minimum tax and calculation methods are detailed on the Division of Corporations site; late filing incurs a $200 penalty and 1.5% interest per month.

Foreign corporations have a June 30 annual report deadline. For LLCs/LPs/GPs, the annual $300 tax is due June 1, with a $200 penalty for non-payment/late payment and 1.5% interest per month.

State tax registration and gross receipts: Businesses should use the Division of Revenue and the OneStop portal to register with the Division of Revenue, Division of Unemployment Insurance, and the Office of Workers’ Compensation.

The Division of Revenue site offers business taxpayer services, including gross receipts tax information and online filing. Delaware does not have a general state sales tax.

Employer obligations: Employers should register via Delaware OneStop for unemployment insurance and workers’ compensation accounts. The Delaware Paid Leave program will be effective January 1, 2026, requiring participation from businesses with 10 or more employees.

Professional licensing and scope of practice: The Division of Professional Regulation (DPR) manages professional licensing. Coaching is generally not a licensed profession.

However, if coaching services involve psychological or clinical work, or cross into therapy or treatment, licensing requirements or telehealth registration rules for regulated professions (like counselors, therapists, social workers, and health-care providers) could be triggered.

It is advisable to check DPR boards and relevant statutes in such cases. Operational and practical compliance items:

• Registered agent: All Delaware entities must have a registered agent on file to receive official notices.
• Local licenses/municipal permits: Some cities, such as Wilmington, Newark, and Dover, may require local business licenses or permits. Businesses should check municipal websites and the OneStop portal for local registration needs.
• Consumer protection/advertising/refund rules: Even without a specific state coaching license, consumer protection rules and advertising standards apply. Coaching academies should maintain clear terms of service, cancellation/refund policies, and transparent marketing.
• Insurance: General liability and professional liability/Errors & Omissions (E&O) insurance are recommended for risk management, though not state-mandated. Next recommended research steps include confirming if specific training programs qualify as private postsecondary/vocational schools, reviewing municipal business license pages for physical locations, and confirming multi-state payroll/tax obligations if employing staff or contractors in other states.