The June 1, 2016 deadline for Delaware Alternative Entities (i.e. LLC, LP and GP) to pay their annual tax for 2015 has come and gone. This year, like every year, countless entities have missed the deadline and are now delinquent in the state of Delaware. Are any of your clients’ entities among them?
The consequences of delinquency can be costly. From a financial standpoint, any LLC, LP or GP that did not pay its $300 annual tax has incurred a $200 penalty as of June 2, and interest has already begun to accrue.
Perhaps even more damaging though, any Alternative Entity that failed to pay its annual tax by June 1 has lost its good standing status in Delaware. A loss of good standing can have far-reaching implications including an inability to enter into or enforce contracts, loss of access to the Delaware courts, difficulty in securing financing, even administrative dissolution.
Many businesses have a difficult time keeping on top of their annual report and tax obligations, particularly those managing multiple entities across many jurisdictions. Compliance requirements can easily fall through the cracks without fail-safe internal processes and a keen attention to detail.
FREE COMPLIANCE REPORT: If you have a client that you think may be struggling to manage the process, CLAS can help! Contact CLAS today to request a free compliance report that will provide a nationwide overview of all of your client’s entities and their status. Out of compliance? We can then work with you or your client to submit payment to the state and bring their entire portfolio back into compliance. We also offer a comprehensive Annual Report Management program to help your clients file timely Annual Reports and stay in good standing.
To learn more or to request a free compliance report, contact CLAS at 800.952.5696 or firstname.lastname@example.org.