Delaware compliance for real estate investors

I researched Delaware compliance for real estate investors by searching official Delaware sources (Delaware Division of Corporations, Delaware Code Title 25 and Title 6, state agency pages), county and municipal guidance (New Castle, Kent, Sussex, Rehoboth Beach, Wilmington), and federal guidance (FinCEN BOI/CTA). Key findings and excerpts are below, organized by topic: 1) Entity formation & maintenance (Delaware LLCs, Series LLCs, registered agent, franchise tax, reports) - Delaware Division of Corporations: LLCs/LPs/GPs must pay an annual $300 franchise tax by June 1 each year; no annual report required for LLCs (https://corp.delaware.gov/alt-entitytaxinstructions/). Excerpt: "All Domestic and Foreign Limited Liability Companies, Limited Partnerships, and General Partnerships formed or registered in Delaware are required to pay an annual tax of $300.00... due on or before June 1st." - Delaware Code Title 6, Chapter 18 (LLC Act) requires a registered office and registered agent in Delaware and sets duties/qualifications for commercial registered agents. Excerpt: "Each limited liability company shall have and maintain in the State of Delaware: (1) A registered office... (2) A registered agent for service of process..." (https://delcode.delaware.gov/title6/c018/sc01/index.html). - Series LLCs and flexibility: Delaware permits series LLCs under Title 6; separate asset segregation recommended; obtain EINs and separate bank accounts for series if treated as separate for tax/operational purposes (Delaware statutory provisions and practitioner guidance referenced). (Delaware LLC statutes and practitioner summaries.) 2) Federal CTA/FinCEN BOI reporting - FinCEN guidance and March 2025 IFR: FinCEN issued an interim final rule (March 26, 2025) that exempts U.S. domestic entities from BOI reporting under the CTA; the revised definition limits reporting companies to certain foreign entities registered in the U.S. Therefore, as of March 2025 domestic Delaware entities are not required to file BOI reports, but foreign reporting companies registered in Delaware may have filing deadlines (https://www.fincen.gov/boi and related IFR). Excerpt: "FinCEN... published an interim final rule... that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI)... Reporting companies registered to do business in the United States before March 26, 2025, must file BOI reports by April 25, 2025..." 3) Landlord-tenant law, security deposits, evictions, disclosures - Delaware Residential Landlord-Tenant Code (Title 25, Chapter 55 and related sections): Security deposit limits: for leases of 1 year or more, security deposit cannot exceed 1 month’s rent; for shorter term/month-to-month leases, no statutory cap. Security deposit must be placed in an escrow account at a federally insured bank with an office in Delaware; landlord must disclose the account location and return deposit with an itemized statement within 20 days after tenancy ends (25 Del. C. §§ 5514; 7017). (https://delcode.delaware.gov/title25/c055/index.html; https://delcode.delaware.gov/title25/title25.pdf) - Summary possession (eviction) and landlord remedies: Delaware law provides for summary possession actions and specific notice/termination provisions; landlords may terminate for material breach or certain criminal conduct and may request forthwith summons in appropriate cases (25 Del. C. § 5512-5514 etc.). (https://delcode.delaware.gov/title25/c055/index.html) - Required notices/disclosures: Landlord must provide the Landlord-Tenant Code summary at lease commencement (25 Del. C. § 5118). Federal lead paint disclosure rules and other federal disclosures (lead-based paint for pre-1978 housing) apply. Smoke and CO detector requirements and building codes apply—check municipal code for specifics (DNREC and municipal codes for environmental disclosures). (Delaware statutes and municipal codes.) 4) Real estate taxes, transfer taxes, recording fees, property tax assessments - Realty transfer tax and recording: Delaware imposes a realty transfer tax (state and county/local components vary by county/municipality). Recording fees and mortgage recording taxes vary by county; consult county Recorder of Deeds/Prothonotary offices (New Castle County Recorder, Kent County Recorder, Sussex County Recorder) for exact rates and schedules. (County websites recommended.) - Property taxes: Real property is assessed and taxed at county level (New Castle, Kent, Sussex). Assessment procedures, deadlines, and millage rates vary by county and year; investors should check county assessor/treasurer pages for current rates and exemption programs. New Castle County, Kent County, Sussex County official pages recommended for current rates. 5) Licensing/permits, property manager licensing, short-term rentals - Delaware does not have a statewide property manager license for residential property managers (check municipal rules). Contractor licensing, building permits, and inspections are handled at municipal/county level and by the state licensed contractor boards. (Check Delaware Division of Professional Regulation and municipal building departments.) - Short-term rentals: Delaware implemented a 4.5% state lodging tax effective Jan 1, 2025; most operational regulation and permitting are local—Rehoboth Beach, Lewes, Dover, Wilmington and New Castle County have differing rules (some require annual rental licenses, safety inspections, local lodging taxes). Verify local municipality for specific short-term rental licensing, zoning and occupancy limits (local ordinances recommended). (Sources: municipal websites and consolidated short-term rental guides.) 6) Mortgage recording and foreclosure law - Delaware foreclosure: Generally a judicial foreclosure state—mortgage foreclosures are processed through courts; the precise procedure depends on the mortgage instrument and whether power of sale is included. Consult Delaware statutes and case law for foreclosure procedures and protections; local counsel recommended for foreclosures due to procedural complexity. (Title 25 and related statutes; practitioners' summaries.) 7) Environmental and professional compliance - DNREC regulates wetlands, environmental contamination, and certain permitting that can affect property redevelopment; site-specific environmental due diligence (Phase I/II ESAs) is recommended. For coastal properties, floodplain regulations and FEMA mapping affect flood insurance requirements. (DNREC and EPA resources.) 8) Practical compliance checklist & timelines (recommended items) - Entity: choose entity (Delaware LLC or Series LLC), file Certificate of Formation, appoint registered agent, obtain EIN, open bank accounts. - Delaware filings: pay $300 LLC franchise tax by June 1 annually; maintain registered agent and good standing; corporations: annual report and March 1 filing and franchise tax rules. - Federal: currently (post-Mar 2025) domestic Delaware entities exempt from FinCEN BOI reporting; monitor FinCEN updates. - Real estate operations: comply with security deposit rules (escrow location, disclosures, return within 20 days), follow summary possession procedure, provide required tenant notices, maintain habitability and safety standards (smoke/CO detectors), comply with federal lead-based paint disclosure for pre-1978 housing. - Taxes/recording: check county-specific realty transfer tax and recording fee schedules at county recorder sites; register for state and local lodging taxes for short-term rentals; obtain required local rental permits/licenses. - Local permits/inspections: obtain building permits, contractor licenses (if required), certificates of occupancy, and safety inspections for short-term rentals. - Environmental: order Phase I ESA prior to acquisition in most deals; obtain wetland/land-use clearance if redevelopment planned. - Insurance: maintain general liability, landlord insurance, flood (if required), and consider landlord/umbrella policies and coverage for short-term operations. - Recordkeeping: maintain corporate minute book, operating agreements, lease files, maintenance records, inspection certificates, tax records, and insurance certificates. Track compliance calendar: June 1 (Delaware LLC tax), March 1 (corporation report/tax), local rental license renewals, property tax deadlines and appeals windows. Citations_excerpts (selected verbatim excerpts linked to sources): - Delaware Division of Corporations: "All Domestic and Foreign Limited Liability Companies, Limited Partnerships, and General Partnerships formed or registered in Delaware are required to pay an annual tax of $300.00... due on or before June 1st." https://corp.delaware.gov/alt-entitytaxinstructions/ - Delaware Code Title 6, LLC registered agent requirement: "Each limited liability company shall have and maintain in the State of Delaware: (1) A registered office... (2) A registered agent for service of process..." https://delcode.delaware.gov/title6/c018/sc01/index.html - Delaware Code Title 25, security deposit & landlord-tenant code: "No landlord may require a security deposit in excess of 1 month's rent where the rental agreement is for 1 year or more... Every security deposit paid to a landlord must be placed by the landlord in an escrow bank account in a federally-insured financial institution with an office that accepts deposits within the State..." https://delcode.delaware.gov/title25/c055/index.html and https://delcode.delaware.gov/title25/title25.pdf - FinCEN BOI and IFR: "FinCEN... published an interim final rule... that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI)... Reporting companies registered to do business in the United States before March 26, 2025, must file BOI reports by April 25, 2025..." https://www.fincen.gov/boi and https://fincen.gov/news/news-releases/fincen-removes-beneficial-ownership-reporting-requirements-us-companies-and-us Summary: I collected primary-state sources (Delaware Division of Corporations pages, Delaware Code Title 6 & Title 25), FinCEN guidance, and municipal/county references to compile a comprehensive compliance overview for Delaware real estate investors. This research supports creating practical blog and newsletter content covering entity selection and maintenance, tenant law, taxes, permits, short-term rental rules, foreclosure considerations, environmental compliance, and a practical compliance checklist with key deadlines. If you want, I can now use this research to draft the full blog post, newsletter content, and a downloadable compliance checklist tailored to US business owners and LLC founders investing in Delaware real estate. Specify tone (expert/authoritative, friendly/practical), length, and any sections to emphasize (short-term rentals, series LLCs, BOI/FinCEN, tenant law, tax checklist).