Due to Sri Lanka’s unending economic crisis, most local businesses are started transforming their business into the USA and UK, and other groups of people migrating to other countries with no options left. Last year I published a post about how to prepare yourself to incorporate Single member LLC in the USA
If you already registered your LLC, LLP from Delaware, Wyoming states, then it’s high time to File your Wyoming or Delaware Franchise Tax before 31st, May 2022. Even if your company was filed in December you’ve to pay the following before the 1st of June, 2022.
1. Delaware State Franchise Tax – ( $300 Mandatory )
Delaware LLCs are not required to file an Annual Report, but LLCs must pay a fixed rate as Annual Franchise Tax of $300 each year. This is nothing to do with your income or number of sales, every Delaware state LLC, must pay the $300 tax otherwise the Delaware state imposes a $200 late payment penalty, plus a monthly interest fee of 1.5%.
3. Tax forms 5472 and 1120 ( $80-$100)
According to IRS, 25% Foreign-Owned U.S. corporations or a Foreign Corporation Engaged in a U.S. Trade or Business. This means that if your business is at least 25% owned by a foreign person or entity, Form 5472 is needed to report any transactions during your company’s tax year. Filling form 1120, every LLC communicates their business performance and figures out their tax liability with the IRS. Whether you like it or not you’ve to file Form 5472 and form 1120. In case you failed to file or even filed incorrectly this will cost you a minimum penalty of $25,000 plus an additional $25,000 for each month the failure continues. Reach out to your registered agent or contact a tax expert via Fiverr this will cost you a maximum of $80-$100 to complete this process.
3. Registered Agent Fee ( $49-$60)
Your LLC registered agent will charge you a certain amount in order to act as your registered agent on behalf of your LLC, The registered agent cost varies however this is always between $60 – $49 which you’ve to pay every year as the Registered agent service fee and sometimes registered agent may charge you extra for file and remit the franchise fee separately.
Conclusion:
When you are operating a business in the state of Delaware or Wyoming just to makesure you are complying with the IRS and the state laws, Ignoring these mandatory filings may create a risk of blocking your LLC operations and ceasing the accounts for non-compliance plus you’ll be reported ( even if no activities) through your EIN records. You only have just eight more days to finish all these processes and you need a minimum of $450 to fulfill these state requirements. Let me know if you have any questions or need any help?
