I’ve seen some other people talk about repercussions and even letters in regards to stuff about their business not being in proper standing or compliance with Delaware but will they actually do anything in regards to the way I operate my business if I’m just an online biz and not a retailer? I’m nervous they will visit my place or some sh*t like that.
What happens if you fall behind on business compliance in Delaware? Anyone dealt with this firsthand?
- Thread starter JESUS
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If your Delaware LLC or corporation falls out of good standing (e.g., failing to file annual reports or pay franchise taxes), the state won’t send people to your house or anything. However, they can administratively dissolve your company or mark it as inactive. This means you won’t be able to do things like:
• Open or maintain a bank account
• Enter into contracts under your company’s name
• Defend your company in court
Delaware is business-friendly, but they do expect compliance. If you’re just running an online biz and not a physical store, they’re unlikely to pursue enforcement beyond penalties and eventual dissolution if you ignore notices.
• Open or maintain a bank account
• Enter into contracts under your company’s name
• Defend your company in court
Delaware is business-friendly, but they do expect compliance. If you’re just running an online biz and not a physical store, they’re unlikely to pursue enforcement beyond penalties and eventual dissolution if you ignore notices.
No, Delaware isn’t gonna send the Secret Business Police to kick down your door lol. But if you ignore compliance, it will create issues when you need to prove your business is legit. Banks, payment processors, and even clients might refuse to work with you if your business isn’t in good standing. Also, if you ever need to sell the biz or raise money, this will bite you in the ass.
Helsenburg1222
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I forgot to pay my Delaware franchise tax for a year, and they just kept sending me warning letters. No one showed up at my door. After about 2 years, my LLC was marked as “Void,” and I had to pay extra to reinstate it. If you stay compliant, you avoid unnecessary headaches.
If you’re 100% online and don’t have a physical store, you probably won’t get any enforcement action beyond emails and letters about your status. They do track non-compliant businesses, but they’re not actively hunting down small online entrepreneurs. Just don’t let it lapse too long, or reinstating it can get expensive.
LMAO thats exactly what I would think would happen, ight thanks for plugging me in on that
Delaware is chill until you let things go for too long. If you rack up unpaid franchise taxes and ignore them for years, they can dissolve your LLC/corporation. Worst case, if you owe a ton and never pay, they can send it to collections. While they won’t send someone to your house, they will make your life miserable if you ever need to fix your company status.
Bro, just pay the franchise tax and file the annual report. It’s like $300 a year for an LLC. If you can’t afford that, your business might have bigger issues.
I had the same worry when I started. Delaware doesn’t do “inspections” or random visits for online businesses. They care about paperwork and money. If you don’t file, you’ll get warning letters and eventually lose your business registration. No scary men in suits are coming for you.
You should be more worried about your payment processors (PayPal, Stripe, etc.) than the state. If they see your business is out of compliance, they can freeze your accounts, and getting them back is a nightmare. Delaware will just send letters, but Stripe might shut you down.
Yeah thats one of the things im wondering right now myself lol
Helsenburg1222
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I let my Delaware C-Corp fall out of good standing for two years. No one showed up at my house, but I couldn’t renew my business bank account, and my CPA told me I had to reinstate before filing taxes. It cost me way more than if I had just stayed compliant in the first place.
If your business is small and fully online, Delaware’s not gonna bother you unless you start racking up unpaid franchise taxes. But if you ever need to interact with banks, investors, or other businesses, they will check your company’s status. Keep your sh*t in order—it’s not worth the risk.