You’ve read everything there is to read about incorporating in the state of Delaware and have decided to begin the journey of being an entrepreneur. Well, one government entity that you need to be intimately familiar with is the Delaware Department of Revenue. The Delaware Department of Revenue is responsible for collecting all the tax revenue for the state of Delaware.
What Services Are Offered?
The Delaware Department of Revenue does more than just collect taxes. It also offers the following services:
- ID Theft and Victim Assistance: We have all know someone that has been the victim of identify theft. In today’s digital world, we have grown in the habit of sharing more and more data online than ever before. However, this convenience has also turned into a liability. With over 500,000 tax returns every year, the Delaware Department of Revenue unfortunately receives fraudulent tax returns. The Division of Revenue offers fraud auditors to help victims of identify theft.
- Gross Receipts and Tax Rates: One of the responsibilities of the Division of Revenue is to determine tax rates and license fees for business entities that operate in the state of Delaware. The detailed list on their website will list the license fee, tax rate, additional location rate and exclusion rate for your business category. Make sure to check out the list so you can begin planning for those expenses and understand when to file your returns. If you have questions about the information on this list, ask your Registered Agent or call the Division of Revenue directly.
- Unclaimed Property: Believe it or not, “unclaimed property” is more common than you think. In the last 3 years, Delaware has returned over $300 million to owners. If you believe that you may have unclaimed bank accounts or insurance benefits in Delaware, it’s worth checking out.
- Filing and Paying your Taxes: The Division of Revenue also makes it simple for you to file and pay your personal taxes or any delinquent person or business taxes. Everything is handled online through their Online ACH Debit Payment System.
- Business Licensing and Registration: In order to operate a business in the state of Delaware, you must register with the Delaware Department of Revenue, the Office of Workers Compensation and the Division of Unemployment Insurance. You can purchase a license and register with Delaware’s Open Stop Licensing and Registration System. There, you can select what type of corporation you want to register, apply for an FEIN if you don’t have one and pay the necessary fees.
Some Quick Info:
Carvel State Office Building
820 North French Street
Wilmington, DE 19801
Tax Forms Needed:
Delaware Corporations: Form 1100
Delaware S-Corporations: Form 1100S S
Partnerships: Form 300
Individual Non-Resident: Form 200-2
What is the Corporate Tax Rate?
Every domestic or foreign corporation doing business in Delaware is required to file a corporate income tax return and pay a tax rate of 8.7%.