Delaware compliance for financial educators

Below is a concise but comprehensive, state-specific compliance summary and practical next-steps checklist for financial educators operating through or to Delaware residents (LLC founders / US business owners).

It covers entity maintenance, state tax & license requirements, securities registration considerations, data/security rules, and practical steps to reduce risk.Quick summary (what most financial educators need to know)- Business entity & formation: Delaware entities must maintain a Delaware registered agent and follow Division of Corporations filing/tax rules (corporations file Annual Report + franchise tax; LLCs/LPs/GPs owe a $300 annual tax).

Common deadlines: corporations — Annual Report & franchise tax due March 1; LLC/LP/GP annual tax due June 1. (See citations below.)- State business license & taxes: If you “conduct business” or provide paid services to customers in Delaware you must obtain a Delaware business license through the One Stop/Division of Revenue and may owe Gross Receipts Tax (service providers typically pay gross receipts tax; new businesses default to quarterly filing).

Delaware has no state sales tax, but gross receipts and employer withholding requirements can apply. - Securities / investment advice: Delaware law (and the Attorney General’s Investor Protection/Division of Securities) requires registration for persons who “transact business” as investment advisers in Delaware unless an exemption applies (e.g., no place of business in DE and no more than 5 Delaware clients in the past 12 months).

State IA registration is processed through IARD (Form ADV) and the Attorney General IPU; fees and minimum net worth / custody/discretion requirements apply. Purely general educational materials that do not give personalized securities recommendations are less likely to trigger IA registration, but personalized investment advice to Delaware residents can create a registration obligation — so analyze activities carefully. - Data security & breach notification: Delaware law requires notice to affected Delaware residents “without unreasonable delay but not later than 60 days” after determination of a breach; if >500 Delaware residents are affected you must also notify the Delaware Attorney General.

If Social Security numbers were breached, offer 1 year of credit monitoring. Maintain written breach procedures, cybersecurity and data-privacy policies.- Advertising & consumer protection: Financial educators should use clear disclosures and avoid presenting personalized recommendations without proper registration/qualifications.

State securities rules, the Attorney General’s Investor Protection Unit, and consumer protection laws regulate deceptive claims and solicitations.Practical compliance checklist (recommended, step by step)1) Entity housekeeping - Maintain a Delaware Registered Agent (physical street address in DE) and keep agent contact current. - Confirm entity type and calendar reminders: March 1 (corporate Annual Report + franchise tax) and June 1 (LLC/LP/GP $300 tax) as applicable.

Pay estimated franchise taxes if required.

Below is a concise but comprehensive, state-specific compliance summary and practical next-steps checklist for financial educators operating through or to Delaware residents (LLC founders / US business owners).

It covers entity maintenance, state tax & license requirements, securities registration considerations, data/security rules, and practical steps to reduce risk.Quick summary (what most financial educators need to know)- Business entity & formation: Delaware entities must maintain a Delaware registered agent and follow Division of Corporations filing/tax rules (corporations file Annual Report + franchise tax; LLCs/LPs/GPs owe a $300 annual tax).

Common deadlines: corporations — Annual Report & franchise tax due March 1; LLC/LP/GP annual tax due June 1. (See citations below.)- State business license & taxes: If you “conduct business” or provide paid services to customers in Delaware you must obtain a Delaware business license through the One Stop/Division of Revenue and may owe Gross Receipts Tax (service providers typically pay gross receipts tax; new businesses default to quarterly filing).

Delaware has no state sales tax, but gross receipts and employer withholding requirements can apply. - Securities / investment advice: Delaware law (and the Attorney General’s Investor Protection/Division of Securities) requires registration for persons who “transact business” as investment advisers in Delaware unless an exemption applies (e.g., no place of business in DE and no more than 5 Delaware clients in the past 12 months).

State IA registration is processed through IARD (Form ADV) and the Attorney General IPU; fees and minimum net worth / custody/discretion requirements apply. Purely general educational materials that do not give personalized securities recommendations are less likely to trigger IA registration, but personalized investment advice to Delaware residents can create a registration obligation — so analyze activities carefully. - Data security & breach notification: Delaware law requires notice to affected Delaware residents “without unreasonable delay but not later than 60 days” after determination of a breach; if >500 Delaware residents are affected you must also notify the Delaware Attorney General.

If Social Security numbers were breached, offer 1 year of credit monitoring. Maintain written breach procedures, cybersecurity and data-privacy policies.- Advertising & consumer protection: Financial educators should use clear disclosures and avoid presenting personalized recommendations without proper registration/qualifications.

State securities rules, the Attorney General’s Investor Protection Unit, and consumer protection laws regulate deceptive claims and solicitations.Practical compliance checklist (recommended, step by step)1) Entity housekeeping

- Confirm entity type and calendar reminders: March 1 (corporate Annual Report + franchise tax) and June 1 (LLC/LP/GP $300 tax) as applicable. Pay estimated franchise taxes if required.

• Maintain a Delaware Registered Agent (physical street address in DE) and keep agent contact current.

Delaware state registrations & taxes - Use Delaware One Stop to register for a Delaware business license with the Division of Revenue if you provide paid services to Delaware residents or have nexus (employees, property, or recurring Delaware sales). Get an EIN, register for withholding if you hire employees. - Register for gross receipts tax (monthly or quarterly filing). New businesses are generally quarterly filers; check rates for your service category and the monthly/quarterly due dates.

Securities / advisory activity review - Map your services

are you providing general education (courses, non-personalized content), or individualized investment advice/portfolio management/recommendations for a fee? If the latter and you have a place of business in DE or more than 5 Delaware resident clients in the past 12 months, you likely must register as an Investment Adviser (or make a notice filing if SEC-covered) with the Delaware Investor Protection Unit and file Form ADV via IARD. - Prepare Form ADV, Part 2 (Brochure), written supervisory procedures (include cybersecurity, data privacy, record retention, complaint handling), client agreements, and proof of IAR testing/qualifications for any representatives. - Anticipate state fees (~$300 for IA registration; $65 for IAR) and possible minimum net worth or bond requirements (e.g., net worth minimums for custody or discretion situations). Use the Attorney General IPU contact and IARD for filing.4) Data security & breach response - Adopt written data security, breach response and retention policies. If you store personal information of Delaware residents, track data access and implement encryption/controls. - Build an incident response plan that: (a) quickly determines whether a breach occurred; (b) documents the investigation; (c) provides consumer notice within 60 days (unless law enforcement requests delay); and (d) notifies the Delaware AG if >500 residents affected. If SSNs are exposed, offer 1 year of credit monitoring.

Marketing & consumer protections - Use clear disclaimers distinguishing educational content from advice; require client onboarding agreements for any paid, individualized advisory services that disclose fees, services, and limitations. - Avoid performance guarantees or deceptive claims; keep records of advertising and disclosures.

Operational best practices - Maintain books & records, start a compliance calendar for March 1 and June 1 deadlines, and consider a registered agent and compliance provider to receive state notices. - Consider professional counsel for securities compliance if you provide anything beyond general education; consult a tax professional about gross receipts and franchise tax calculations.Recommended next actions (short list)- If you provide or plan to provide personalized investment recommendations to Delaware residents, contact the Delaware Attorney General’s Investor Protection Unit early and begin the IARD/Form ADV process. - Register and obtain a Delaware business license via One Stop if you have nexus or are charging Delaware customers. - Set calendar reminders for March 1 (corporations) and June 1 (LLCs/LPs/GPs) and confirm franchise tax procedures with your CPA. - Implement written data security & breach procedures (include 60-day disclosure timeline) and document cybersecurity practices in supervisory procedures if you register as an IA.Limitations and recommended legal/tax review- This summary relies on Delaware statutes, official regulator pages, and guidance documents as of searches completed in this research session. State rules and administrative interpretations change; municipal/local rules or industry-specific licensing may also apply. I did not find (within the sources I collected) a single Delaware page explicitly describing money-transmitter licensing rules in detail — if you take payments, facilitate transfers, or hold customer funds you should separately confirm money-transmitter / MSB licensing with Delaware’s banking regulator or the Attorney General’s office.If you want, I can now

- Draft a Delaware-specific compliance checklist tailored to (a) a pure online course seller (general education) or (b) a fee-for-advice model (personalized coaching/portfolio recommendations), or- Draft the specific Form ADV/IA filing checklist (documents, policies, sample supervisory procedures) for a Delaware IA application,- Or produce a short client-facing disclosure and website disclaimer tailored for a financial educator to reduce securities risk.