What Is a DUNS Number?
What is an Individual Taxpayer Identification Number?
Common Questions About Your Delaware State File Number
Obtaining a Tax ID Number for a Delaware LLC
An EIN Number Never Dies
If you own a business, you may have heard of a DUNS number. If you’re unfamiliar with it, a DUNS number is a nine-digit identification number issued by Dun & Bradstreet (D&B) that verifies the existence of a company globally. It’s typically obtained for a range of reasons, including doing contract work with a government organization, separating your personal credit from your business credit, and more.
Want to know how to get a DUNS number fast? Just visit D&B’s website! Their standard service can take up to 45 days, but the company offers an expedited service that will get you a DUNS number in five business days.
For more information on the number, what you need to apply, and why many business owners choose to obtain one, please visit our DUNS number informational page.
The Delaware Series LLC
Drastic Savings with the Delaware Series LLC
Proposed Regulations on the Series LLC
More Info on The Series LLC
101 on the Series LLC
We’ve found that there is one type of Delaware entity that clients are incredibly curious about: The Delaware series LLC. What is it? Under Delaware law, a limited liability company (LLC) may be composed of an individual series of membership interests. This type of entity is referred to as a series LLC. Here, we’ll go over the pros and cons of this type of structure so you can determine if the Delaware series LLC is right for your business.
Pros of the Delaware Series LLC:
- It has a low start up cost. Series LLC owners only need to form one LLC. They then have a myriad of series internally, without any additional expenses for the creation of an individual series.
- Series LLCs have one Delaware franchise tax payment of $300, regardless of how many series the LLC has.
- There is just one Delaware registered agent fee regardless of the number of series
- Each series effectively is treated as a separate entity, meaning the debts, liabilities, obligations, and expenses of one series cannot be enforced against another series of the LLC or against the LLC as a whole.
- Each series can hold its own assets, have its own members, conduct its own operations, and pursue different business objectives, but remain insulated from claims of members, creditors, or litigants pursuing the assets of or asserting claims against another series.
Cons of the Delaware Series LLC:
- The legal separation of the assets and liabilities of each series in a Delaware series LLC has not been tested in court. Even if a Delaware series LLC were properly operated with distinct records relating to the assets and liabilities of each series, a court in another jurisdiction could determine not to recognize the legal separation afforded under Delaware law.
- The U. S. federal tax treatment afforded to individual series is not certain. The IRS and Treasury Department have proposed regulations that would make crystal clear that each individual series, within the Delaware series LLC, could be considered a separate entity for the purposes concerning the federal taxation of the entity. With the proposal, each individual series can elect the tax classification that would best suit that individual series needs. One series could be taxed like that of a partnership if there were two or more members, while another series can be considered a disregarded entity.
- Other states have not provided concrete guidance on the effect of the series distinction for state tax purposes.
- When operating as a foreign LLC in California, there is a franchise tax of $800 per series. Other states are considering charging annual fees for each series within the LLC when operating as a foreign LLC in their jurisdiction.
- Banks are not familiar with the structure and have a hard time understanding that each series can open up a bank account.
- Many attorneys and tax professionals are not familiar with the structure and cannot provide counsel or guidance.
Once the IRS & Treasury Department finalize the proposed regulations on the series LLC, the structure will gain popularity and become commonplace, potentially replacing the traditional LLC in the distant future.
To view all of our articles on the series LLC, click HERE.
Ready to form a series LLC? Please visit our easy-to-use LLC order page.
Have Your Voice Heard about Harvard Business Services
Harvard Business Services: First With a Digital Seal
Delaware BBB Rating for Harvard Business Services: A+
Let Harvard Business Services Incorporate Your Company
Reviews of Harvard Business Services
The Better Business Bureau (BBB) provides a service that is used by hundreds of thousands of people every day. For businesses, a BBB accreditation lends extra prestige to your work, signaling to customers that you’re trustworthy.
Harvard Business Services is proud to say it has been an accredited business with the BBB of Delaware since 1998. We strive to provide the best customer support to our clients and take great pride in our BBB status.
To help show our support, we recently teamed up with BBB of Delaware to do a short radio ad. Click the button below to hear it!
Click here to hear the ad!
It’s worth noting that the BBB offers a new feature that allows clients to give businesses a review. If you have enjoyed working with us and want to give us kudos, please write a review on our BBB page!
How to Close a Company
Changing Your LLC Name, Registered Agent, and More: It’s Doable!
Doing Business As
An EIN Number Never Dies
DBA in California
Have you thought about changing your business name , or have you recently changed the name of your LLC or corporation? If so, it’s your responsibility to make sure everyone knows it, including the IRS. The specific action can vary depending on entity type, but under most circumstances changing your business name with the IRS will NOT require a new EIN. To make this determination, see IRS Publication 1635.
Though it’s rare, sometimes changes to names are made right after EINs are issued. If you recently received your EIN and have not made any tax filings with the IRS, then send your business name change request to: IRS-Stop 343G, Cinicinnati, OH 45999
If tax liability for the EIN has already been determined (i.e. you’ve already filed a tax return for the entity), there are two ways to notify the IRS of your entity’s new name.
1. When filing a current year tax return, you can check the name change box on the entity’s respective form:
Corporations – Form 1120, Page 1, Line E, Box 3
S-Corporation – Form 1120S, Page, 1, Line H, Box 2
LLC (partnership) – Form 1065, Page 1, Line G, Box3.
LLC (sole member) – cannot update name by filing return; must use option 2.
2. If you have already filed the return for the current year, you do not have to wait until next year to change your company’s name with the IRS. Changing the name of a corporation or an LLC, typically requires an amendment to be filed with the state or country where the business entity was originally formed. Deliver a filed copy of this amendment, along with a letter informing the IRS of the name change, to the address where you filed your return. Corporations must have the letter signed by a corporate officer, while LLCs must have the letter signed by a member.
Once you’ve informed the IRS of your new name, you’ll need to let everyone else know you’ve changed your name too. It’s a good idea to make a list of all the other agencies and companies that you do business with on a regular basis; be sure to include all state and local tax authorities, vendors, suppliers, service companies, banks, etc. This will help keep you organized during the transition and make sure your mail service is not interrupted. It’s your responsibility to make sure that everyone is on the same page in the new chapter of your company.
How to Open a Business Bank Account in the US
101: Opening a Bank Account for a New Company
Delaware Division of Corporations Has a New Bank Address
Doing Business in Florida with a Delaware LLC
Local Compliance When Incorporating in Delaware
“I want to open a Delaware business bank account.” I can’t tell you how often we hear this request from international clients. Why? Many clients that form Delaware corporations also need U.S. bank accounts.
Wherever the company is based, if the objective is to provide I.T. services or to become an Amazon.com or an eBay vendor, for example, non-U.S. clients are going to want to be able to receive payments here in the U.S. Many of our non-U.S. clients will want to set up a payment gateway of some sort, like PayPal, while others may simply want to have a U.S. business checking account for their Delaware corporation.
Whatever the case may be, the opening of a U.S. bank account for non-U.S. clients is one of the most difficult steps in the entire incorporation process.
Unfortunately, no two U.S. banks are exactly the same, and their specific policies and procedures for opening a business bank account for a Delaware corporation can be drastically different. There are, however, certain requirements that will be uniform for most banks. These are some of the things that will be needed to open the bank account for a Delaware company:
-Proper photo identification, such as a driver’s license or passport
-Certificate of Incorporation, stamped by the Delaware secretary of state
-Articles of Incorporation (included on the Certificate of Incorporation)
-Federal Employer Identification Number (EIN)
-Banking resolution with corporate seal (often provided by the bank)
Due to strict regulations, Delaware registered agents are prohibited from opening up bank accounts for companies they form. We can, however, have the Certificate of Incorporation filed and approved within two to three business days or less. We can assist with obtaining the Federal Employer Identification Number (EIN) for the Delaware corporation. We also provide a digital corporate seal for each company for which we serve as the Delaware registered agent.
While Harvard Business Services can provide the proper documentation for opening the Delaware business bank account, unfortunately, a major hurdle for non-U.S. clients, is appearing at the bank in person. In our experience, typically every U.S. bank will want to work with their potential clients directly. Many international clients are able to drop everything and travel to the U.S. to open the business bank account, in which case, this is not an issue. In many cases, however, this may not be an option.
It’s a good idea for non-U.S. clients to call or email the bank they wish to do business with and get all the details on opening the bank account before they ever step foot in the branch. This is a good way to ensure everything will go smoothly when opening the business bank account for the Delaware corporation, and to avoid any headaches.
Call Harvard Business Services today at 800-345-2677 if you have any questions about forming your Delaware LLC or corporation. We’re here to help!