What is Business Compatibility?
Business compatibility refers to the essential requirements you need to fulfill to ensure the sustainability and protection of your business. The primary focus is on safeguarding your personal assets by adhering to the legal and financial obligations required to maintain limited liability. These obligations include proper management of your business, attending to its annual requirements such as holding regular meetings, keeping records, maintaining a “registered agent,” and paying franchise tax.
Legal Requirements for Business Sustainability
There are two critical legal requirements to ensure the annual sustainability of your business in the U.S.:
1. Paying Franchise Tax
2. Maintaining a Registered Agent
Failure to meet either of these requirements will result in penalties, invalidation of your business, and eventual liquidation.
How to Pay Franchise Tax
You can find more detailed information about franchise tax in our related articles. If you need assistance with paying franchise tax, we offer services to help manage this process for you. By partnering with us, you can ensure your business remains in good standing without the stress of handling tax obligations yourself.
When to Pay Franchise Tax and Registered Agent Fees
•Corporations: Franchise tax is due by March 1st.
•LLCs: Franchise tax must be paid by June 1st.
Registered agent fees are typically determined by the registered agent you choose to work with. If you choose our services, we’ll agree on the payment date together.
Why Is the Franchise Tax Notification Sent to My Registered Agent Instead of Me?
In Delaware, the names of company executives are not publicly disclosed. Therefore, one of the key responsibilities of registered agents is to ensure timely delivery of franchise tax notifications to the business owner. If you partner with us, you will receive reminders before your franchise tax deadline, and we can also provide copies of important documents, such as franchise tax forms, in case you misplace them.
When Should the First Meeting of a Company Be Conducted?
While Delaware corporate law does not specify a strict timeline, it is advisable to conduct your company’s first meeting shortly after its formation. During this meeting, topics such as management structure, shareholder introductions, public share offerings, employee discussions, and agreements should be covered.
Your business is considered a “local business” within the state in which you incorporate. If you wish to operate in other states, your business will be regarded as a “foreign entity,” requiring Foreign Qualification. You can find more information about Foreign Qualification in our articles.
Have Questions?
We’re here to assist you with any questions you may have regarding starting and maintaining your business in the U.S.
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Choose one of our services to start your business in the U.S., and feel free to contact us for further information or questions.
For Pre-Sales Inquiries, Call us at +1 302 310 21 76 (WhatsApp available!).⬤