Can I Sign Delaware Banking Living Will

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hello everyone and welcome to today's webinar this is Michael Cooper with Harvard Business Services and their goodbye Mike Bell our president and we're going to be getting started in just a second here a couple quick notes as everyone kind of finishes logging in getting settled first of all this webinar going to be about 30 minutes long it's a little shorter than many webinars that we do there's this not quite as much that needs to be said about Elysee franchise tax but that being said many people do have questions about it and we are going to welcome your questions as we go so feel free to use the chat box during the discussion today and type in whatever questions you might have Mike and I will do our best to answer all those questions for you before we end today we are recording the session so you will receive an recording by email tomorrow as well as each slides for the webinar so there's anything that you want to go back and check you'll be able to do that without a problem so with that I'm just I'm just going to jump in and give you a little bit of information about us oh and actually while I'm speaking one thing that we like to do if you've ever been a part of our webinars before is ask our audience where they're listening from I know we have some clients from all over the world so if you don't mind just take a second go to the chat and just type in where you are whether it's a state in the United States or a country outside I would love to know where your comment will just take a look at what countries are represented by our audience today so while you're doing that I'll just mention a little bit about our company we were founded in 1981 in Wilmington Delaware by Rick bell students Dennis has been a family-owned and operated company myself who's going to be doing the presentation today was appointed our president this past January so he's near that position we're now located in Lewes Delaware which is right down on the Atlantic coast in the southern part of the state we've formed over 150 thousand companies I think we're actually closing in on 160,000 right now and we have over 75,000 current clients worldwide we are a Delaware registered agent and formation specialists we're very customer focused we provide free lifetime support low prices and friendly staff we have people here in the office that are helping our clients all day long with their questions answering whatever they might have and really just trying to do our best to make everybody satisfied and clear on the process that they're going through I do want to mention that we're not attorney than we're not accountant so anything that we covered here today should not be taken as legal advice or at accounting advice you can seek out those professionals if you need to if you have specific questions for your situation and lastly we are not affiliated with Harvard University completely separate entity from them so with that I'm going to jump to the next slide here and I'm going to hand things over to Mike is gonna take you to our presentation today Oh everyone thanks for attending our monthly webinar we've done quite a few of these now so it's great to have those joining us and we're going to get into a little bit about LLC franchise tax here we did at a separate webinar on corporation grand x tax which you can find on our YouTube channel Delaware Inc one and you can also find our other videos there as well so I'm going to start off with some basics about the Delaware franchise tax just so everybody is aware of it because franchise can mean a lot of different things that's just the terminology that the state of Delaware uses so the Delaware franchise tax is due every year for every Delaware company to keep the company in to the same with the state of Delaware that has no very known company activity or income and the company simply what you pay for the writer privilege to own a Delaware company and it does not pertain to being a franchise business such as McDonald's Burger King coca-cola things of that nature the corporations prejudice expert corporation is due on March 1st of every you and four LLC's and limited partnerships it is due on June 1st every year which is just a couple days away even though June 1st is falling on a weekend the state's deadline is still June 1st or filing the franchise tax so you want to make sure that you get this paid before June 4 on or before June 1st the way the state of Delaware works with paying franchise taxes you're paying the franchise tax and a rares so you're paying for the previous calendar here so do June 1 of 2019 in 2018 franchise tax the 2019 franchise tax will not be due until June of or March of 2020 so here due on June 1st is franchise actual companies that were incorporated in 2018 they're making you pay the franchise tax or 2018 the corporative your business here in 2019 that's then you don't have franchise tax due unto March or June of 2020 so a lot of people want to know what is required to be filed with a LLC here in the state of Delaware there's actually nothing that's required to be filed with an LLC so corporations are required file a report but a LLC is not required to file name report so instead you're just simply paying a fixed flat rate of $300 for the franchise tax and again that has no bearing or company activity or income in the company it's just the simple price you pay for the writer privilege to know the Delaware we also get the question is is franchise tax the same as a registered agency and the answer to that is no registered agent feeds are separate from the franchise tax franchise taxes take paid to the state of Delaware and the registered agent is paid to the company that is acting as your register each registered agent is the liaison between you and the state of Delaware their job is to for the loan any services a process such as lawsuits that are served against company and do notify you of the annual franchise tax here in Delaware since a lot of our clients do not physically live here in the state of Delaware and do not have a sensible address here instead of nowhere you are required to have a registered agent at all times here in Delaware and Harvard Business Services been acting as registered agent they're nowhere since 1981 and our revenue agency in the state of Delaware has remained at 50 dollars since we opened in 1981 so we have one lowest annual registered agent fees in the industry and we say we feel that that is very competitive and is a great price for us to act beat so a lot of people then ask well what happens if I don't pay my franchise tax by June 1st well if you don't pay it by June 1st and you let it go until June 2nd you're going to find that the state is going to impose a $200 late penalty and then they will impose an interest of 1.5% on top of that so it is imperative that you make sure to pay the LLC franchise tax by June 1st to avoid any penalty if you a lot of people also ask well what happens if I don't pay my franchise tax if you don't pay your friends as tax for three consecutive years your company will go so each each year you will get a $200 late penalty and then the state assesses 1.5 monthly interest every month that you don't pay it and then if you don't pay it for the second year same thing happens third year when if you recent extra years of not paying that Frazier sex the company just goes dull avoid here in the state of Delaware the state of Delaware does not come back acting for it back franchise tax because I don't have any of your information on record but you know it is good to make sure you want to keep your company your Delaware in this painting that you pay the annual franchise tax every single year and that's why we're so diligent in making sure to get notices at least six months in advance so you have ample time to make payment arrangements so here is comparing the LLC and the corporation Franchise Tax just so you guys can clearly see the difference so the LLC franchise tax is due on June 1st of every year it's always $300 there's no annual report required and if you do not pay it by June 1st you get hit with a $200 late penalty plus 1.5 percent Interest per month for a corporation it's due March 1 the forensic tax varies depending on how many authorized shares you have in the company there is an annual report that is required filed for corporations and that's $50 in addition to what your franchise tax is and if you don't pay it by March 1 there is a two-minute our late federal penalty plus 1.5 percent Interest promote that you do not pay it so it is the corporation the LLC are very different when it comes to filing your franchise tax we do have a dedicated senior who is happy to walk you through answering any of your questions regarding LLC franchise tax or corporation franchise tax so that you understand it clearly and are to make payment on time we do also offer a filing service to make sure that it is paying on time with the state of Delaware so you can currently pay that on our website right now I'm just go to Delaware comm /jf T you can also if you have an account owner Clint portal you can go pay for your company or you're getting multiple minis and go pay for all of your companies right there on our client portal you can also do it from our website as well we do charge a small filing fee to use our services to file it with the state of Delaware are currently our filing fee is fifty nine dollars in addition to the Delaware franchise tax so via total three hundred and fifty nine dollars per company and once you pay that fee these then make sure it gets up to the state of Delaware on time and so you don't get hit without any link penalties for a church so if you need assistance we're here to help you but it's not required to you you're not required to utilize our services but we just offer it so that you get it there for you if if you want to take the stress off yourself I'm going to have other important things to worry about okay so um we also get questions well if I'm paying the franchise taxes state of Delaware you have to pay the franchise tax and other states yes if you are filed here in the state of Delaware and you're operating in another state jurisdiction and you have formed qualified your business there you're typically going to have to pay any local state compliance matters along with any annual reports that they require as so being in Delaware cousin does does not exempt you from paying taxes of two other shades so if you're not physically operating here in the state of Delaware generally the only to the only to manual fees you're paid here in Delaware's annual franchise tax and the annual register agency whereas if you're operating in another state jurisdiction your children are going to pay your income tax plus an 8 or for the franchise tax in that state so there's a lot of different variables with you know each state as they all have their own requirements we will give you the basic information regarding franchise tax but if you have questions with regards to income tax or things of that nature or other taxes that you may subject to in your home state you will need to speak to a local accountant in your home state who can help answer those questions to the - for you to have a knowledge than you need to know all right so I let's say you don't want your LLC anymore and we are sorry to hear when fines do come to us and tell us that they no longer need their LLC it means they need to shut it down there is a couple different ways to do this the formal way of closing your company here in the state of Delaware is by filing a certificate of cancellation there is a filing fee to cancel the LLC which is four hundred and fifty dollars and then you will have to pay any current with an tax franchise tax up-to-date to file a formal cancellation with the state of Delaware but once you file that search of code cancellation filing fee plus the pea franchise tax that then we properly file that certificate and then we provide you a copy of it to show to anybody that you need to show to that you formally closed the business with the state of Delaware the less formal options of closing your business is you can request the registered agent to reside there is a fee of associated with us resigning as a registered agent which $79 once we resign is registered agent it will place the company to an inactive force that it status with state of Delaware you will not be required to pay any current or past due franchise tax unless you wish to renew and revive that company in the future so if you decide I don't need this company right now and you come back in a year and you say hey listen we do need this company now we can renew and revive the company but there is a filing fee associated with that question I have to pay any current and tax you franchise taxes to get that company reinstated with the state of Delaware the other way to let the company know is to not pay your franchise tax for three consecutive years after not for three consecutive years the company will go void with the state of Delaware again you will not be required pity any current or past due franchise tax unless you wish to revive the LLC in the future which is that time you with the next day the renewal fee plus the franchise tax over the last three years so if you do end up letting your company go with the state of Delaware don't file a certificate cancellation many people may often just file a brand new company that way as is a lot less expensive but if you needed that company history of the incorporation date in the file number and things of that nature and then you would act over knew the company but it is more expensive to renew a company than to this support brand new here in the state governor and then a lot of people after they file their franchise tax on the banks or you know maybe your shareholders or your investors or someone may want to see a certificate of withstanding also known as a certificate of existence that helps to show that the company is up to date with their Delaware franchise tax this document comes directly from the second secretary of state from the state of Delaware and it spells it out to let them know that you're current with franchise tax here in the state of Delaware and we do obtain this document for you in as little as two hours but if you're not in the rush for it we can get it for you in 24 to 48 hours $4.99 now so it is it may be required it may not be required but as you can say there's various transactions where you may need it whether it's opening a business bank account obtaining for qualification to business another and another state or buying or selling real estate in the companies so that's pretty much what I have for you today I know it was a short presentation but LLC's are very easy to go over here in the state of Delaware I'm going to turn it back over to my dad if you have any questions we'll be happy to answer this for you thank you for your time thank you Mike and I was just repeat with you just then we do welcome your questions so if you have anything rejecting that's not making sense or something we didn't cover please go ahead and type in your questions and we'll have time to answer anything that you might have and while you're thinking about that I do just want to let you know that we are here to help you should feel free to contact us anytime you have an income you like or whatever questions you might have about your Delaware companies we're available by phone and email obviously you can also reach us by live chat on our website during our business hours which are generally 9:00 to 5:00 Eastern Time and we're also available by Skype or user in Estella wearing and I know that's a little bit easier for some international clients so I feel free to contact us that way as well and lastly many of you I know are already subscribers to our plot if you're not and you would like to be it's a very simple demonstration here of how to do so we send out one email per week featuring different content from our blog news or how-to article or you know different aspects of owning and maintaining a Delaware company we will never stab you we're not going to send you a whole bunch of email all the time and we don't sell or share your information with anyone in stays with us and doesn't go nywhere else so we encourage you to do that and if you do a question please go ahead and send them in I'm going to start with one question that I had for you which is if somebody was multiple LLC's and decide that they franchise tax how do they do that is it one transaction er they have to do separate transactions okay so if you do it via our website or via our client portal that you're a client of ours you can pay for all your companies in one transaction whereas if you go somewhere else you might have to pay for each LLC separately so we make it very easy for you to pay if you have multiple LLC's to pay them all at one time via either our website or our blank form great okay and Alex is asking a question do you help in filing doing business as for different states we are not able to assist with filing that a DDA in different states that's something you're going to do with the local county that you are located in in the state you just call up the division of Revenue in your state and let them know you need a DBA and they can assist you with that but prior to doing a Jenny made doing business as if you have not filed for for qualification in your Delaware company they may require you to file for qualifications so you're going to want to check and see if you've done the formal qualification process before you obtain the doing business as great and we have a question now from Patrick what is the fee situation for the difference between an LLC and n-series at opening okay so each state is different as far as the annual fee for a series LLC I'm sharing this day to Delaware as as now you pay one franchise tax for the series LLC which is $300 here but I really do not that law is changing and they are going to make you pay a franchise tax for each individual series that you have in the state of Delaware so I believe only 300 ollars pro series they have under or series LLC a lot of other states do this as well the state of California does it so their franchise tax is $800 so it's $100 per series that you have there's other states such as Illinois and the state of New York there are some states that don't recognize a series LLC so the franchise tax where they don't recognize the series LLC is going to be different so you'll want to you know act we can try and answer that question to the best of our ability but each state it's different as far as what they charge for this year is LLC's but I can tell you it +16 flat rate here in state dollar but is changing very soon I believe it's this year that they're changing the law and required each series to pay franchise tax all right well that's that's all the questions that we have so you know franchise tax royalties it's relatively simple and I hope we were able to answer you know whatever your questions are confusing there might have been for anyone and again that the deadline to pay is June 1st which is this coming Saturday and as Mike said in the beginning even though it's on a Saturday the states does not extend that deadline to the following Monday or even the day after I'm some day it must be paid on or before this Saturday to avoid any kind of late fees so thank you again for joining us we're going to be sending out the recording and the slides for today's webinar in an email tomorrow so you will have a chance to review anything as you miss and you are always welcome to contact us with any additional questions that you may have thank you for taking some time out of your day today and we hope you enjoy the rest you may