Welcome to the May compliance brief — one email’s worth of what actually matters this month for non-U.S. owners of U.S. LLCs.
Delaware’s quiet fee
Every spring we hear the same surprise: “I have no revenue — why do I owe Delaware $300?” Because the franchise tax isn’t an income tax. It’s a flat fee for keeping your LLC registered, due June 1, revenue or not. If you formed in Delaware, budget for it as a fixed cost. (Formed a corporation by mistake? The bill is formula-based and much larger — check which entity you actually have.)
A 5472 reminder
If you filed a Form 7004 extension in April, your Form 5472 + pro-forma 1120 is now due October 15. That’s runway, not a reprieve — the failure-to-file penalty still starts at $25,000. Put it on the calendar now, while it’s not urgent.
Reader question: can I move my LLC to another state mid-year?
Short answer: yes, by domestication (if both states allow it) or by forming new and dissolving old. Either way you’ll have a partial-year obligation in the old state — don’t skip its final report. We’ll cover the full mechanics in a dedicated resource soon.
That’s it for May. Reply with what you’d like us to dig into next month.