The new and improved invoice is now double-sided and has just recently been released, so if you have received this single piece of paper, check out the back! No more sorting out the clutter! Of course, if you’ve already signed up for our email billing, you’ll receive that too.

The new technology not only will help save some trees, it also includes an amazing new feature for you smartphone users. The QR code, all you need is a QR reader app. Just hover over the magic square and Viola! Your company details instantly appear and your options for payment are right there on your cell phone.  We do request that you enter your credit card details each time to use this system, to avoid unintentional click-throughs and protect your personal information. The classically simple mobile-specific worksheet offers the same options and discounts to pay should you be selecting one-two-or-three years’ services.

If you prefer to give us a call, visit our secure website, or complete the worksheet and mail, fax or scan it to us, that’s up to you.

If you call us, you’ll be contacting us in our Lewes, Delaware offices and a real person, who is a specialist in forming and maintaining Delaware companies will discuss your options with you, and/or take your Delaware Registered Agent Payment over the phone. If you don’t have questions, and just want to pay the fee for another year, we can process your order over the phone in about two minutes

Have a new address? Don’t forget to keep us updated! On the reverse side of the invoice, you may include any changes in contact details for your company, or mention it if you call in.

As your Delaware agent, we hope you find it easy to deal with us in every way! If you have any questions regarding annual registered agent fees, feel free to contact our office via email, rapayments@delawareinc.com or by phone, 800-345-2677 extension 6902.

Oh, and one more thing… Our GUARANTEED FIXED DELAWARE ANNUAL REGISTERED AGENT FEE IS STILL ONLY $50 PER YEAR, PER COMPANY, and it’s GUARANTEED to REMAIN FIXED AT $50 per year FOR THE LIFE OF YOUR COMPANY, so long as you keep your company in good standing and pay in a timely fashion. No Delaware Agent has been able to promise and deliver on that promise for over 30 years except HARVARD BUSINESS SERVICES!

Did you know?!?!….

-Delaware is the second smallest state, with a land area of 1,948 sq. miles (Rhode Island is the smallest.) But Delaware is the least populated State.

-Delaware is the lowest state, with an average altitude of 60 ft. above sea level.  It is 95 miles long and between 9 and 35 miles wide. Its highest point, near the PA line, is 442 ft. above sea level.

-Delaware has the fewest counties of any state (3).

-Neighboring states know Delaware as the “Home of Tax Free Shopping,” and it is one of only five states without a sales tax.  Other states are Alaska, Oregon, Montana and New Hampshire.

-Delaware’s official state name is “The First State”, because it was the first of the 13 original Colonies to ratify the Constitution in 1787, thus becoming the first state in the nation.  Because of this, Delaware is given the first position in congressional votes, and national events, such as Presidential Inaugurations.

-Delaware’s state bird is the Blue Hen, and the state is also known as the “Blue Hen State.” This nickname was given for the highly esteemed Blue Hen cocks carried with soldiers for cock fight entertainment during the Revolutionary War.

-The state’s economic and industrial development was, for over a century, closely tied to the DuPont family, founders of one of the world’s largest chemical companies and the parent company of General Motors Corporation from 1933 until the 1950’s. Gunpowder was an early product.

-Delaware ranks second in scientists and engineers as a percent of the workforce, and has the highest number of patent awards per person.

-Delaware is home to Dover International Speedway, also known as the “Monster Mile,” which hosts two NASCAR races each year.  Dover Downs is also a popular harness racing facility.

-Tourism is a major industry, with Rehoboth Beach nicknamed “The Nation’s Summer Capital,” because of the number of people from Washington D.C. who come to enjoy the Atlantic’s sandy shore as a vacation destination.

-Delaware remained in the Union during the Civil War.  The Governor said that his state was the first to join the Union by ratifying the constitution, and would be the last to leave it.

-State Tree – American Holly

To view all the “fun” facts about Delaware go to http://delaware.gov/facts/

Well, if you were as curious as I was then you would have been just as shocked as I was when I heard just after midnight on March 28^th that Earvin “Magic” Johnson and the Guggenheim Partners made the winning bid of $2 Billion of which $1,587,798,000 would be paid in cash and making Magic Johnson the first African-American to own a Major League Baseball team. This is the highest price any sports team has ever sold for – by a wide margin, according to Forbes Magazine.

Now, I want you to follow me on how well Frank McCourt made out on this deal. In 2004 Frank McCourt bought the Los Angeles Dodgers for $430 Million, by selling the team for $2 Billion that is an $860 Million profit. I guess losing six houses and $131 Million to his ex-wife Jaime McCourt in their divorce settlement is not so bad after all.

While I said on March 28^th they announced the winning bid of $2 Billion you knew that someone was going to object to this sale from going through. On April 10^th, 2012 both Fox and Major League Baseball objected to the proposed sale of the Dodgers in U.S. Bankruptcy Court here in Delaware.

Fox says the incoming ownership group that includes Magic Johnson has not disclosed whether Time Warner Cable is involved in the purchase. Fox spokesman Chris Bellitti said, “Our filing today was a routine administrative filing to ensure our rights are protected.” Fox is the Dodgers current broadcaster and has an exclusive 45-day period starting in October to try to negotiate a new contract with the team. The current contract also prohibits the Dodgers from talking to other potential buyers of the media rights before Nov. 30^th and gives Fox a limited right of first refusal on competing offers received after that date.

Major League Baseball said not enough money had been set aside to satisfy what is owed by the Dodgers. While the Dodgers have put aside $322,065 for MLB’s claims, the league said it was owed at least $8 Million as of Feb. 22^nd. Major League Baseball also had separate concerns about the financing of the deal. Guggenheim has not disclosed whether funds from insurance companies it controls are being used, an MLB is worried such funds have the potential to subject the team to state regulators.

While Guggenheim Baseball declined comment on both matters the hearing to confirm the sale agreement was scheduled for April 13^th before U.S. Bankruptcy Judge Kevin Gross. In a two part morning and evening hearing the Judge called a “doubleheader” The bankruptcy court judge here in Delaware gave his approval to the Los Angeles Dodgers plan to sell the team for $2 Billion to Earvin “Magic” Johnson and the Guggenheim Partners.

To read the complete Forbes Magazine article click here: http://www.forbes.com/sites/briansolomon/2012/03/29/2-billion-dodgers-sale-tops-list-of-most-expensive-sports-team-purchases-ever/

To read the complete ESPN articles click here:

http://espn.go.com/los-angeles/mlb/story/_/id/7798516/fox-mlb-file-objections-los-angeles-dodgers-sale

http://espn.go.com/los-angeles/mlb/story/_/id/7811681/los-angeles-dodgers-planned-sale-approved-bankruptcy-judge

So this got me to thinking…what alternatives are there if the USPS does go insolvent, yes there is UPS, Fedex and DHL which all makes sense…right? Although they cost more, which might mean for some companies a raise in prices or shipping fees. Then again the USPS keeps raising mail costs ever so slightly every year and here at Harvard Business Services since 1981 we are still able to provide the lowest Registered Agent fee in the industry at $50 per year guaranteed never to increase for the life of the company, so long as the fee is paid on time. Why you ask?  Because here at Harvard being a small company we’re able to meet the needs of our clients entirely by email.

So with all that said, email not only speeds up business, but it doesn’t cost anything to send something by email. To prove my point I recently came across an article by Carol Tice from entrepreneur.com called Five Ways Small Businesses Can Beat Rising Mail Costs that may help your small business and reiterate how email is so important in today’s world.

1. Plan better. Having to spring for overnight delivery costs a bundle. Push back your mailing deadlines and send letters and packages by regular mail. As USPS deliveries may slow down, this could be even more important.

2. Prune your list. How current is the mailing list you’re using? Maybe it’s time to clean out your list. Send a postcard asking interested customers to respond to stay on the list. Cut the deadwood and lower your mail charges.

3. Compare costs. If USPS prices rise, competing offerings from UPS, FedEx and others may look more and more attractive. But even now — before any changes kick in — it might be worthwhile to reach out and see if there are cost or service advantages to switching all of your mail business to a competitor.

4. Switch to email. For letters, try an email marketing program such as AWeber or Mailchimp to deliver that great-looking flier to customers’ email inboxes instead of their mailboxes. If you’re concerned customers won’t like it, mail them and ask for email opt-in. (You’ll probably be surprised how many will prefer virtual delivery.) An added bonus: if you didn’t have them before, now you’ve captured current customer email addresses.

5. Try private electronic mail. Some big companies and government agencies are already taking advantage of new services such as Zumbox and Earth Class Mail, which allow you to send full-featured, clickable messages to customers’ private electronic mailboxes for retrieval from wherever they are — not just at home. This keeps your message out of clogged email inboxes. 

To read the full article click HERE.

You’ve got a fabulous new idea. It’s an idea that you believe will pick up steam, buzz. You might even be planning to approach a venture capitalist soon.

At this early stage, you might be thinking of doing the basics. While the following steps may sound very simple, you need to be cautious because early mistakes could cost you down the line.

Here are five legal mistakes startups make:

1. Choosing the wrong entity. Some Big Law corporate attorneys will tell you that funders prefer C-corporations over other forms. While LLCs are becoming more popular, not all investors prefer them and the switch from an LLC or a partnership to a C corp could cost you in legal fees down the road.
2. Filing in a state other than Delaware. It makes sense to file in your home state. But corporate attorneys swear by Delaware for incorporating. Delaware is also usually the state of choice for funders. 

There isn’t just one reason why Delaware has long been the favored state for incorporating.  This enviable position is because of the State’s total package of incorporation services, including fair and flexible laws, a responsive State government, and a unique court of Chancery, that has 200 years’ of case law that has refined and literally defined “Corporate Law” for two centuries.

Delaware’s centuries old Court of Chancery has written most modern U.S. case law, while interpreting Delaware’s General Corporation Law, which is known as the most usable and advanced business formation statute in the nation.  The Delaware Division of Corporations in this business-friendly State provides state-of-the-art service to customers.

The Division’s 2011 Annual Report, summarized below, reviews progress, developments, and marketing efforts which keep Delaware the premier state for incorporations.

• Overall new entity formation grew 13 % in 2011
• 70% of all new entities are LLC’s
• 4% increase in active business entities since 2010
• 86% of all new Initial Public Offerings (IPO’s) incorporated in Delaware in 2011
• Incorporation revenue made up 24% of the State’s general fund for 2011
• 9% increase in paid transactions via the internet, due to leadership in technology in order to better serve customers
• International marketing outreach included worldwide trips and conference leadership promoting the Delaware Advantage.

The total package, combining Delaware’s General Corporation Law and LLC law, Court of Chancery, and Division of Corporations working together, make Delaware the premier home of choice for entities today.

To view the complete report, click HERE.

Q:  What exactly is a franchise tax?

A:  It is a fee imposed on every company incorporated in the State of Delaware.  It is the fee you pay for the privilege of having a Delaware company.

Q:  But my company is not a franchise?

A:  The term “franchise” does not mean your company is a franchise like McDonalds.  It is simply the name that the State of Delaware gave the tax.

Q:  How much is the franchise tax?

A:  The fee is determined by the type of company you have.  An exempt (religious/charitable) company will owe $25.  A minimum stock company (has less than 5000 authorized shares) will owe $125.  A maximum stock company (has more than 5000 authorized shares) will owe at least $400.  An LLC/LP will owe $250.

Q:  When is the franchise tax fee due?

A:  All INC’s are due by March 1.  All LLC/LP’s are due by June 1.

Q:  My company was just formed in 2011, do I owe the franchise tax in 2012?

A:  YES.  Any company that was in existence as of December 31, 2011 will owe the franchise tax in 2012.

Q:  I formed my company in 2012, when is my first franchise tax deadline?

A:  March 1, 2013 for an INC or June 1, 2013 for an LLC.

Q:  Do I still owe the franchise tax if my company has not conducted any business?  If I did not open a bank account?  If my company is not located in the US?  If my company did not file a Federal tax return?  If my company has not obtained an EIN?  

A:  YES to all.  Bottom line, since you have a company incorporated in Delaware, you have to pay the tax.

Q:  What happens if I don’t pay the franchise tax?

A:  The State of Delaware will impose a late penalty of $125 for INC’s or $200 for LLC/LP’s plus 1.5% monthly interest.  Also, the company will cease to be in a good standing status.

Q:  What is the HBS filing fee?

A:  It is a service offered to assist in the filing of the annual franchise tax report.  We will make sure your franchise taxes are filed accurately and on time with the State of Delaware, or we are responsible for any late penalties and interest that may be imposed.

Q:  How much is the HBS filing fee?

A:  The rate varies depending on when filing arrangements are made, and ranges from $29 to $59 plus the cost of the franchise tax itself.

Q:  How can I pay the franchise tax?

A:  Visit our secure website at www.delawareinc.com/payft to make arrangements via debit or credit card or PayPal.  You can also telephone our office at 1-800-345-2677 or 1-302-645-7400, extension 6901.

If you have any additional questions or would like further explanations, send us an email at:  franchisetax@delawareinc.com.

Clients that form a Delaware company often operate their companies in other States and also in other countries around the world, and therefore have local compliance matters in their home jurisdiction that need to be addressed.

The process of registering your Delaware company in another State is generally called “foreign qualification”.  In other words, it is the way your home state gives you permission to operate there with a Delaware company.  It is their way of getting their “piece of the pie.”  Clients will “foreign qualify” in order to make sure that their business is not only legal and valid in Delaware but in their home state as well.

One of the biggest misconceptions about Delaware is that once you form a Delaware company, you are done, and there is no need to qualify in your home state.  Clients sometimes think that by forming in Delaware, you can get away from compliance matters and/or fees in your home State or State of operation.  This is not the case.

Please take note of these three areas when determining your local compliance requirements:

1.      Taxation-  One of the benefits of Delaware is that companies that file in Delaware but do not physically operate here often do not pay Delaware income tax.  By qualifying the business in whatever state it is operating, hiring employees, or holding real estate, it becomes taxable in that state.  It is a requirement by all states that a company register and pay taxes to the state in which they are physically operating.  Most states will charge penalties and back taxes to companies that are caught operating there without paying taxes.

2.      Legality- While a Delaware company can operate in any State and any country in the world, it must comply with all local regulations in the jurisdiction. If not, the company may not withstand a legal challenge in that jurisdiction.

3.      Banking- Often when opening a bank account, banks will require a Certificate of Authority in the state in which the bank account is being opened.  Read more about opening a bank account for a Delaware company here:  http://blog.delawareinc.com/banking-clarification/

It is our goal to inform our clients that they have compliance responsibilities in their home jurisdictions as well as Delaware, but we cannot advise you of all the local responsibilities in your particular jurisdiction. For compliance matters in any local jurisdiction contact the local Chambers of Commerce in your city, county and State.

We can, however, make filing your State “Foreign Qualification” a breeze. We offer Foreign Qualification services in all 49 states for Delaware companies and we discount the fee if you file your company through Harvard Business Services and then file the foreign qualification within three weeks of forming the Delaware company.

The FBAR reporting requirement includes all U.S. LLCs – Single member LLCs and multi member LLCs — even if they may be considered “Disregarded Entities” regarding tax matters.

There are no exceptions for entities owned by non U.S. nationals. LLCs with foreign owners exclusively are now required to file the FBAR. Although the U.S. Treasury has no jurisdiction over the foreign owners as private citizens of another country, acting in their own country, it can require the entity, which is a U.S. citizen for FBAR purposes, to file the form, and it clearly does this. There is also no exception for income source. Whether the income was earned outside the U.S. or transferred from the U.S. to the foreign account is not relevant with regard to the responsibility to file the FBAR.

All companies are required to file the report on or before June 30, 2012 for financial accounts active in 2011. Entities filing the FBAR will have to have a U.S. EIN (Employers ID Number).

We can assist with the filing of the FBAR report. If you would like our assistance in properly completing and filing these documents for you we must get started right away since a great deal of information and original signatures must be obtained for both the SS-4 and the TD F 90-22. In order to file the reports in a timely manner, we must receive all the necessary information and payment from you by June 1st, for each company.

The cost for this service between now and June 1st will be $230 per company. We will email the form to you for completion. You may then email the form back to us for a review by a filing specialist. We will then confirm if the form is fully completed by email and ask you to courier or mail the original form to us for filing. An original must be sent. Once received, we will UPS the documents to the proper place for filing.

As mentioned above, a US tax ID number (EIN) is required for this filing. If a number has not yet been obtained for your company, we can get one for you for just $95.

If you would like us to assist with the FBAR and/or EIN filing, please contact us at filings@delawareinc.com. Or you may call our IRS specialist Nadine Jordan at 302-645-7400 extension 6129.

“Since 2008, eDelaware has streamlined how Delaware corporate and business law is accessed in today’s fast-paced environment.  Lawyers and business professionals using iPhones and Ipads who deal with Delaware corporate and alternative entity law will now have it available to them whenever and wherever they need it,” said Scott E. Waxman, a partner at Potter Anderson & Corroon LLP,  Delaware’s oldest law firm.

Once downloaded, the statutes and case summaries are stored on the device to be accessed even when no wireless connection is available, while traveling or at a meeting. Updates will be sent automatically and will be available when eDelaware is accessed.  An index is available to guide the user to specific statutes, sections, and summaries.

Iphone and Ipad users go to the App Store and download “eDelaware” app today!