Tag Archives: business entities

NH ranks high for business friendliness

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Now this is the kind of news that fellow New Hampshire citizens can get excited about.  A recent survey was released with favorable results for those looking to open a business here in the Granite State.  NH currently ranks as the 5th friendliest state to start a business and the 8th friendliest states.  Several of the those surveyed noted the lack of income tax as a favorable reason. Others noted that the hiring costs were not as friendly, resulting in a “D” grade for NH.

You can check out the story over at the NHBR.com website here: State ranks high for business friendliness.

Until our next conversation.

The (Business) Tax Man Cometh

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OK. So the title isn’t 100% accurate since the taxes I am referring to are not the ones that most start ups might think of. These are not exactly the same as IRS-type taxes, rather these are “taxes” that states require for your entity to stay in good standing.  These are your annual maintenance fees so you don’t get a letter saying your Inc. or LLC is in trouble.

These are some deadlines coming up for business entities in the most popular states we assist clients with formations.  Delaware calls one of its fees a “franchise tax”, which can be confusing at times.  The general idea is that the DE “franchise tax” works similar to an annual fee based on the par of your stock and/or value of your assets.

Delaware Corporations

  • Franchise taxes – Due before March 1
  • Annual report -Due before March 1
    • $50 fee
    • $125 late fee penalty if after March 1
  • Pay and file both online here

Delaware LLCs

  • No Annual report
  • Annual tax – Due before June 1
    • $250 fee
    • $200 late fee if after June 1
  • Pay and file online here

Massachusetts Corporations

  • Annual report – Due within 2.5 months after close of fiscal year (for most companies this will be due February 15 if you use December 31 as your fiscal year end)
    • $100 if filed online, $125 if filed by paper

    Pay and file here

Massachusetts LLCs

  • Annual report – Due on or before March 9
    • $500 fee
  • Pay and file here

These are fairly straightforward dates and amounts that you can budget for early on in 2012, with the exception of the DE franchise taxes, which require a bit of calculating based on your unique situation.

Assisting clients with managing corporate filing dates and creating new entities is something my firm, Ascentage Law, does regularly.  If you have any questions, please feel free to contact me.

Because everyone’s situation is unique, you should consult an attorney and/or accountant to determine how the deadlines above apply to your situation.