Delaware compliance risk monitoring

Stay on top of your Delaware compliance with these key updates and practical tips for US business owners and LLC founders. Critical Deadlines to Mark Your Calendar: March 1: Domestic corporations must file their annual report and pay franchise tax. June 1: Domestic LLCs, LPs, and LLPs have their annual tax due. June 30: Foreign corporations must file their annual report. December 31: Delaware business licenses typically expire and require renewal. Important Regulatory Changes: Registered Agent Requirements (Effective August 1, 2025): Delaware registered agents are now required to maintain a physical business office in the state, moving away from virtual offices or mail-forwarding services. Ensure your registered agent complies with this new mandate. Federal BOI Reporting Update (March 26, 2025): FinCEN's interim final rule has exempted U.S.-created entities and their beneficial owners from Beneficial Ownership Information (BOI) reporting. However, foreign reporting companies registered to do business in the U.S. before March 26, 2025, must still file their BOI reports by April 25, 2025. Always consult FinCEN guidance for the latest information. Consequences of Non-Compliance: Missing deadlines can lead to significant penalties, including a $200 fine for corporate annual report non-filing and a 1.5% monthly interest charge on unpaid taxes and penalties. Non-compliance can also result in a loss of good standing, impacting your ability to conduct business, secure financing, or engage in M&A activities. Practical Compliance Tips: Verify Franchise Tax: Corporations should confirm their tax calculation method (Authorized Shares vs. Assumed Par Value) and use the Division of Corporations' calculator to avoid surprises. Maintain Entity Hygiene: Keep a current master list of all your entities and formally dissolve any inactive ones. Leverage Technology: Consider compliance automation platforms and professional registered agent services to help manage deadlines and filings efficiently. Regular compliance audits can also help reconcile records and ensure accuracy.