Tax and Accounting Regulations
Delaware has 0% corporate income tax rates for companies not operating within the state, though all Delaware corporations must pay an annual corporate franchise tax.
What are the annual costs associated with a Delaware LLC?
Limited Liability Companies and Limited Partnerships formed in the State of Delaware are not required to file an Annual Report; however, they are required to pay an annual tax based on a flat rate of $250.00.
Taxes for these entities are to be paid no later than June the 1st of each year.
It is important to remember to pay the tax on time because Delaware will assess a Penalty for non-payment or late payment of $200.00. In addition, Interest accrues on the tax and penalty at the rate of 1.5% per month.
Non-stock for profit
All non-stock, for profit entities that do not comply with the Exempt Corporation requirements will be required to pay a Franchise Tax of $175.00
Authorised shares method
For corporations having no par value stock the authorised shares method will always result in the lesser tax.
- 5,000 shares or less (minimum tax) $175.00.
- 5,001 - 10,000 shares - $250.00,
- Each additional 10,000 shares or portion thereof add $75.00
- Maximum annual tax is $180,000.00
A corporation with 10,005 shares authorised pays $325.00($250.00 plus $75.00).
A corporation with 100,000 shares authorised pays $925.00($250.00 plus $675.00[$75.00 x 9]).
Does my Delaware LLC have to request an EIN from the IRS?
An LLC run as a one member LLC can either use the Social Security Number (SSN) of the single owner to conduct business, or it can obtain a separate Employer Identification Number (EIN). An EIN is also required for an LLC if it is a multimember LLC.
We recommend that you obtain an EIN number soon after the formation of your LLC.
If you are not a citizen of the United States or Resident Alien and you form a one member LLC and don’t do any business effectively connected with the United States, which includes not having a U.S. bank account, you will not have to get an Employer Identification Number (EIN) for your Delaware LLC or file any US or State income tax returns. If you have a company that has more than $10,000 total in accounts outside the U.S., you will need to complete the one-page IRS Form TD F 90-22.1 also known as FBAR reporting (Foreign bank and financial accounts).
Crypto-currency Start-ups Buying False Reviews is Destablising Reputable Investment Sources
When cryptocurrency issuers want reviews for their coins, reports have surfaced that several prominent companies have been found offering money to advertisers in exchange for positive appraisals.
Is the Era of Shell Companies Coming to an End?
The Honourable Dr. Orlando Smith, Premier and Minister of Finance has announced that the BVI Government will take all reasonable steps to address European Union concerns about economic substance and a new Legislation is intended to be in force by the end of December 2018 in order to avoid the European Union Black List of Tax Heaven Jurisdictions.
Regulatory Update: BVI Economic Substance Act 2018
In 2016, the Council of the EU pledged to start advocating tax transparency and fairer taxation within Europe and consequently worldwide. After the EUs Code of Conduct Group (COCG) on taxation investigated BVI practices, they found a number of concerns regarding legitimate substance requirements for companies and limited partnerships doing business in and through BVI.
Information on the Payment of Cyprus Taxes for Pensions & Rental Income
Cyprus employees who are considered to have tax resident status, pay tax on their global income. Employees not considered to be tax resident are only charged for specific types of income that are originating from Cyprus-based sources.
Cyprus Regulatory Update: Shell Company Definition & Exceptions
The Central Bank of Cyprus has released new guidance for all credit institutions on the island, refining the definition for shell companies and subsidiary entities; coming into effect from November 2018, which are detailed as follows:
Singapore Variable Capital Company VCC: New Features & Benefits
The introduction of the VCC is a significant positive for the Singapore funds industry. Its aim is to retain Singapore as an attractive business destination and to keep investors wishing to domicile locally.
Consolidated Accounts for Hong Kong Companies: Subsidiary Requirements
As per Hong Kong company’s ordinance subdivision 3 section 379 subsection 1, a Company Director will have to prepare year-end financial accounts that comply with sections 380 and 383.
Challenges of Our Time: Cryptocurrencies & Their Regulation
The very concept of cryptocurrencies derives from technologies and the creation of alternatives to existing payment systems, which for the most part is caused by the negative consequences of financial crises and the injustice within the sphere of financial and legal regulation. Many people are convinced that the cryptocurrency is likely to become an alternative to the established global financial system and open new opportunities to those segments of the population and citizens of those countries that are deprived of the opportunity to work with the banking financial system.