Delaware compliance for freelancers

Research steps and summary: I searched authoritative Delaware and federal sources (Delaware Division of Revenue, Delaware One Stop, Division of Corporations guidance summarized on Gusto, Delaware business guidance pages, and reputable tax guides) to identify state-specific compliance obligations for freelancers operating in or from Delaware. Based on the collected sources, the key compliance items for freelancers in Delaware are:1) Business registration and state business license- Any person or entity conducting a trade or business in Delaware must obtain a State of Delaware Business License and register with the Division of Revenue via the One Stop portal. (Delaware One Stop / Division of Revenue)- The annual fee for a Delaware business license varies; the rate is generally $75.00 for a first location. Some activities require separate licenses. Localities may also require additional licenses.2) Entity formation and annual state filings- If a freelancer forms a Delaware LLC, the LLC must pay Delaware’s annual entity tax: LLCs, general partnerships, and limited partnerships pay a flat fee of $300 (due June 1 for LLCs). Corporations have separate franchise tax calculations and annual-report filing deadlines (typically March 1 for corporations). (Delaware Division of Corporations / Gusto summary)3) State and federal taxes for freelancers- Federal self-employment tax applies to net earnings (total rate 15.3%: 12.4% Social Security up to the wage base, 2.9% Medicare). Delaware state income tax is progressive (rates cited in guidance range roughly from 2.2% to 6.6%). Freelancers must file federal and state returns and make estimated tax payments as required. (Everlance summary)4) Gross receipts tax and sales tax- Delaware has no state sales tax, but Delaware imposes a gross receipts tax on business receipts; freelancers should review whether their services are subject to gross receipts tax and learn filing frequency (monthly/quarterly based on receipts). (Delaware Division of Revenue guidance summarized)5) Employment, withholding, and contractor classification- Businesses with employees must register for withholding tax and unemployment insurance (Division of Unemployment Insurance) and workers’ compensation; employers must file withholding returns on selected schedules. Businesses without employees do not need to register for unemployment insurance or workers’ compensation. Misclassifying workers as independent contractors when they should be employees creates liability for withholding, unemployment, and payroll taxes — freelancers who hire subcontractors should evaluate classification carefully and follow federal IRS and Delaware guidance.6) Information reporting (1099-NEC) and recordkeeping- Businesses that pay independent contractors $600 or more in a year must file Form 1099-NEC with the IRS and provide payee copies. Maintain accurate records, invoices, and contracts. (IRS guidance — consult IRS 1099-NEC resources)7) Beneficial Ownership Information (FinCEN BOI)- Delaware-formed LLCs and many other domestic reporting companies are subject to FinCEN’s Beneficial Ownership Information reporting requirements; business owners should verify whether BOI filings are required and the deadlines for initial and updated reports. (See FinCEN BOI guidance)8) Local permits and professional licenses- Certain professions may require state-level occupational licenses; local town/county permits or zoning reviews may apply (check Wilmington, Dover, Newark, and New Castle County requirements where applicable).9) Penalties and deadlines- Missing business license registration, failure to pay the LLC $300 annual tax, franchise tax for corporations, gross receipts tax, withholding, or unemployment filings can trigger penalties, interest, and enforcement by Delaware agencies. Keep deadlines (e.g., LLC/alt-entity tax due June 1; corporate franchise tax/annual report due March 1) on calendar.Next steps I recommend for producing the blog/newsletter content: (1) confirm current statutory text and forms by linking directly to the Division of Revenue One Stop registration pages, Division of Corporations franchise/alt-entity tax pages, Delaware Department of Labor pages for employer registration, IRS pages for 1099/independent contractor guidance, and FinCEN BOI pages; (2) produce a compliance checklist tailored to freelancers (sole proprietors vs LLCs vs S-corp election), an example timeline of registrations and recurring filings/deadlines, and sample language for client contracts to reduce misclassification risk; (3) include links to forms, estimated tax worksheets, and recommended resources (registered agent services, tax pros).If you want, I can now draft the full blog post and newsletter content (title, slug, meta description, excerpt, full article with checklist, and an email newsletter using your template) tailored to US business owners and LLC founders, with embedded links to the official sources listed below.