Delaware compliance for B2C service companies

I researched authoritative Delaware-specific sources and curated the key compliance requirements for B2C service companies, focusing on Delaware LLCs and corporations. Sources consulted include the Delaware Division of Corporations, Delaware Department of Revenue (franchise taxes), Delaware Department of Justice/Attorney General (consumer protection, Delaware Personal Data Privacy Act), Delaware Department of Labor (employer obligations, paid leave, workers' compensation), Delaware statutes (telemarketing, gift card/escheat), and FinCEN (BOI/Corporate Transparency Act).

Summary of steps taken and key findings are provided below. Summary of research steps:

I researched authoritative Delaware-specific sources and curated the key compliance requirements for B2C service companies, focusing on Delaware LLCs and corporations. Sources consulted include the Delaware Division of Corporations, Delaware Department of Revenue (franchise taxes), Delaware Department of Justice/Attorney General (consumer protection, Delaware Personal Data Privacy Act), Delaware Department of Labor (employer obligations, paid leave, workers' compensation), Delaware statutes (telemarketing, gift card/escheat), and FinCEN (BOI/Corporate Transparency Act).

Summary of steps taken and key findings are provided below. Summary of research steps:

Queried Delaware Division of Corporations site for formation, registered agent, annual report and franchise tax rules, deadlines, and penalties.

Consulted Delaware Department of Revenue franchise tax pages for amounts, deadlines (March 1 for corporations; June 1 for LLC/LP/GP tax), penalties, and interest. 3. Reviewed Attorney General (Delaware DOJ) consumer protection pages for Delaware Personal Data Privacy Act (DPDPA) effective Jan 1, 2025, enforcement, consumer rights, and related privacy obligations.

Checked Delaware telemarketing registration and Delaware Telemarketing Fraud Prevention Act for registration, bonding, required disclosures, prohibited acts and remedies.

Retrieved Delaware Code sections on unclaimed property/gift cards and escheat rules.

Consulted FinCEN BOI/Corporate Transparency Act guidance and alerts including the March 2025 interim final rule revising reporting to foreign entities only (removal of U.S. companies from reporting requirements). 7. Reviewed Delaware Department of Labor resources for employer obligations

withholding, unemployment insurance, workers' compensation, minimum wage, paid leave (Healthy Delaware Families Act obligations effective 2025-2026), and other employer responsibilities. 8. Gathered additional commentary from law firms and trusted providers summarizing 2025 statutory updates affecting registered agents and DGCL changes (SB95-SB98 2025) including physical registered agent presence and new Annual Report “nature of business” disclosure for corporations. Key findings and guidance (concise): - Formation & Registered Agent - Delaware entities (LLCs and corporations) must have a Delaware registered agent with a physical street address (no PO Box). Recent 2025 statutory changes (SB95 et al.) emphasize physical presence requirements for registered agents—registered agents must maintain an in-state office with regular business hours. Update and verify registered agent status to avoid rejected filings or loss of good standing. (Source: Delaware Division of Corporations; Harris Sliwoski LLP summary) - Annual Filings & Franchise Tax - Corporations: Annual Report and Franchise Tax due March 1 each year. Annual report filing fee and franchise tax depend on authorized shares or assumed par value methods; minimum tax amounts apply; penalties: $200 late report penalty and interest at 1.5% per month on unpaid taxes. (Source: Delaware Division of Corporations; Delaware Dept. of Revenue) - LLCs/LPs/GPs: Flat annual tax of $300 due June 1 each year; penalty $200 plus interest at 1.5% per month for late payment. LLCs generally do not file annual reports but must pay tax and maintain registered agent. (Source: Delaware Dept. of Revenue) - Licensing & Local Permits - Delaware may require professional licensing depending on the B2C service (e.g., medical, legal, cosmetology). Check state licensing boards and local municipal requirements. No statewide general business license—local permits may apply depending on the activity. (Source: Delaware Division of Corporations and state licensing boards) - Consumer Protection & Advertising - Delaware DOJ enforces consumer protection statutes and telemarketing rules. Telemarketers must register and post a $50,000 surety bond; follow disclosure, call-time, and prohibited-act rules. Violations include voidable sales, damages, and criminal penalties. CAN-SPAM and federal telemarketing rules (TCPA) also apply. (Source: Delaware Telemarketing Fraud Prevention Act; Attorney General site) - Data Privacy & Breach Notification - Delaware Personal Data Privacy Act (DPDPA) effective Jan 1, 2025 applies to controllers/processors meeting thresholds (35,000 consumers or 10,000 + 20% revenue from sales of data) and imposes privacy notice, consumer rights (access, delete, correct, portability, opt-outs), data minimization, security, and data protection assessment requirements (for larger processors). Enforcement by Delaware DOJ; civil penalties up to $10,000 per violation; initial cure period through Dec 31, 2025. Businesses must provide a Delaware-specific rights notice and a mechanism to contact privacy@delaware.gov for complaints. (Source: Delaware DOJ; Akin Gump & NatLaw Review summaries) - Delaware also has data breach notification obligations (state statute requires notice to affected Delaware residents and the Attorney General in certain events)—follow the Attorney General guidance on data breach reporting and cyber fraud resources. (Source: Delaware DOJ pages) - Sales Tax & Nexus - Delaware has no statewide sales tax. This makes it attractive for B2C sellers, but sellers should still consider: (a) local lodging or prepared food taxes if applicable; (b) nexus in other states where customers are located (economic nexus thresholds for sales tax collection may require registration/collection in other states); (c) marketplace facilitator rules for platforms (follow other states’ rules). Confirm whether services are taxable in states where customers reside. (Source: Delaware Dept. of Revenue; multistate guidance) - Employment & Labor - Employers with Delaware employees must withhold Delaware income tax, register for unemployment insurance, and comply with state wage laws (minimum wage $15.00 as of Jan 1, 2025), paid leave contributions (Healthy Delaware Families Act: employer/employee contributions began Jan 1, 2025; paid leave benefits begin Jan 1, 2026 with varying employer size rules), workers' compensation coverage, and posting/recordkeeping obligations. Check the Department of Labor for registration and contribution rates. (Source: Delaware Dept. of Labor; Baker Donelson overview) - Gift Cards & Escheat (Unclaimed Property) - Delaware has escheat/unclaimed property laws covering unredeemed gift cards. Gift cards’ dormancy or expiration is governed by statute; state limits on expiration/inactivity fees align with national norms (NCSL summaries and Delaware Code Chapter 11). Report and remit unclaimed property per Delaware deadlines. (Source: Delaware Code Title 12, Chapter 11) - BOI / FinCEN Corporate Transparency Act - As of March 2025, FinCEN’s interim final rule revised reporting to remove U.S. companies from BOI reporting requirements; reporting companies are now foreign entities registered to do business in the U.S. Confirm current FinCEN guidance because the rulemaking and litigation history may change obligations for entities formed outside the U.S. (Source: FinCEN press release and BOI pages; Delaware Division of Corporations CTA guidance) - Penalties & Good Standing Risks - Penalties for late filings include statutory late fees ($200 for reports/tax late), interest at 1.5% per month, administrative dissolution for prolonged noncompliance, and potential civil penalties under state privacy law (up to $10,000 per violation) and consumer protection statutes. Maintain registered agent, timely tax and report payments, and comply with privacy/telemarketing/consumer protection rules to avoid enforcement. (Sources: Delaware Dept. of Revenue, Delaware DOJ) Actionable checklist for B2C service business owners / LLC founders in Delaware: 1. Keep a valid Delaware registered agent with a physical street address; verify compliance with 2025 registered agent requirements. 2. Mark key state filing deadlines: March 1 (corporate Annual Reports & franchise tax), June 1 (LLC/LP tax $300). Budget for minimum franchise tax amounts and potential variable corporate taxes. 3. Determine whether your business meets DPDPA thresholds; if so, prepare/update privacy notices, opt-out mechanisms, data subject request processes, and data protection/security measures. If processing large volumes or sensitive data, prepare data protection assessments (applicable from July 1, 2025 for certain activities).

Ensure telemarketing compliance if applicable

register with Delaware AG, obtain required bond, maintain records, and follow disclosure/prohibited-act rules; comply with TCPA and CAN-SPAM for calls and email marketing.

If selling goods or taxable services, evaluate nexus in other states; register and collect sales tax where required. Delaware lack of sales tax does not eliminate multistate obligations.

For employment

register for withholding, unemployment insurance, and workers' comp; comply with paid leave contribution and future benefit rules; follow minimum wage and posting requirements.

Maintain bookkeeping for unclaimed property and gift card dormancy rules; file escheat reports as required.

Monitor FinCEN guidance on BOI reporting and consult counsel for borderline cases; keep BOI records even if reporting relief applies.

Use a compliance calendar, engage a registered agent or compliance service, and consult Delaware counsel or CPA for complex tax or regulatory questions. Citations and verbatim excerpts

(selected authoritative links and short verbatim excerpts used in research) Conclusion: I have compiled authoritative, state-specific compliance requirements and practical next steps for Delaware B2C service companies (LLCs and corporations). This covers entity maintenance (registered agent, annual taxes/reports), privacy and consumer protections (DPDPA, telemarketing, breach reporting), employment obligations (withholding, paid leave, workers’ comp), sales tax nexus considerations, unclaimed property/gift cards, and BOI/CTA developments. If you want, I can now: (a) draft a comprehensive blog post for your target audience with headings, SEO elements, and a newsletter version using your provided template; (b) produce a concise compliance checklist or calendar tailored to your entity type; or (c) prepare sample privacy notice language and consumer rights procedures to meet DPDPA requirements. Which would you like next?