Project managing a Delaware LLC annual renewal
In November 2018, our UK-based Client purchased a Delaware turnkey solution company from our firm. The turnkey solution included i) a single member LLC company (LLC) and ii) an already-approved USA corporate bank account. The company specialises in radiology reporting and diagnostics services.
Since 2020, every year Healy Consultants’ in-house Accounting and Tax Department is responsible for timely, accurately, and completely discharging our client’s statutory USA legal, accounting, and tax obligations.
In December 2021, we were re-engaged by our Client to assist them with the annual renewal of their Delaware company. The Client paid our renewal invoice including i) renewal of Delaware registered agent and legal registered office services ii) mail forwarding from our Delaware affiliate’s office iii) payment of annual Delaware government fees iv) payment of annual Delaware franchise tax to the Delaware Division of Corporations and v) submitting a Delaware personal tax return filing.
I emailed our Client a detailed engagement project plan outlining i) total expected Delaware renewal fees ii) documents required to progress the renewal iii) a breakdown of weekly and monthly deliverables iv) timeline to complete the engagement and v) any expected engagement problems and solutions. This detailed project plan helps our multi-national Clients visualise the engagement over the coming months. Consequently, our Clients can plan and prepare the necessary documents to efficiently and effectively complete the required renewal steps in a timely manner.
- Healy Consultants’ Delaware affiliate is the registered agent and provides the Delaware registered office address for our Client. This service was automatically renewed when our Client settled the renewal invoice.
- Healy Consultants’ Delaware affiliate’s office provides a mail forwarding service for our Client’s Delaware company. This service was automatically renewed when our Client settled the renewal invoice.
- To renew a Delaware company, an annual payment is made to the Delaware government. I paid this fee on behalf of our Client and sent a scanned receipt confirming that this had been completed in a timely manner.
- Delaware franchise tax is calculated on the number of authorised shares in the company. I calculated the franchise tax payable, confirmed this amount with our Client, and then made the payment to the Delaware Division of Corporations. I received a receipt from the Delaware Division of Corporations confirming that the tax had been paid and forwarded the receipt to our Client.
- Because our Client is neither a US citizen nor US permanent resident, he was also required to file a personal tax return (declaration) and disclose the company’s activities to the Inland Revenue Service (IRS). A local Delaware company’s income or loss passes through to the business owner and is included in a personal income tax return submitted with IRS.
- Prior to filing, we created the client Individual Taxpayer Identification Number (ITIN) with the IRS.
- I completed the personal tax return and sent it to our Client for review before submitting it online to IRS.
- Throughout the period of the engagement, our team supplied weekly detailed engagement status updates to our Client, providing an overview of engagement progress, as well as problems and solutions (if any).
Once all of the above was completed, I sent a Summary of Obligations to the Client, including:
- Signed Delaware registered agent renewal agreement.
- Signed registered office renewal agreement.
- Receipt confirming Delaware government renewal fees were paid.
- Receipt confirming franchise tax payment had been paid to the Delaware Division of Corporations.
- Receipt from confirming that our Client’s personal tax return had been submitted.
- Paid renewal invoice.
Our Business Website Department also requested a professional reference from our Client.