An LLC delayed effective date is a specific day in the future when your LLC officially is created.
Usually, when you submit a filing with the state it goes in to existence whenever the state gets around to reviewing your submission and approving the formation.
However, a delayed effective date lets you "push out" or "delay" the day your LLC is officially created.
Here's an example: Lets say today is December 1st, 2020:
Lastly, you might see several terms for this and they are all interchangeable:
Okay I made that last one up by combining all of the above words but you get the point, they all mean the same thing!
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A delayed filing is most advantageous when you select a delayed effective date in the beginning of the new year.
Why? By doing this you can avoid several things:
Let's give an even more extreme example using the state of California.
California has an annual franchise fee tax of $800. This fee is due every calendar year, not every 12 months.
So this means if you were to start an LLC that was "born" or "officially created" on December 31st, 2020, you would be responsible for paying the full $800 franchise tax fee for the year of 2020!
Fast forward to January 1st, 2022, one year and one day later, even though essentially only one year has passed by, instead of owing $800 to the state of California... you will owe $1600!
To make things worse, the first annual franchise tax fee payment is due within the first 3-4 months from when your LLC is formed, and from then on, due by April 15th each year. So if you were to create a California LLC that went in to existence on December 31st, 2020, you would have to pay $1600 in the first 5 months!
Okay, so enough about how a delayed effective date works.. how do you select one / in what states can you select one?
Yes! Here's how to do it:
Now it is possible to do all of the above on your own... but if you're strapped for time or want someone to handle the above for you so you can focus on what you do best = growing your business... let Doola file your Delaware delayed effective filing for you today!
Yes! Here's how to do it:
Note: Once you start the process online you only have 30 minutes to do it. As the state says: "Once you begin this Wizard, you will have 30 minutes to complete your filing due to name availability complexities."
Now it is possible to do all of the above on your own... but if you're strapped for time or want someone to handle the above for you so you can focus on what you do best = growing your business... let Doola file your Wyoming delayed effective filing for you today!
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