Accounting / CPA Permits & Licenses in Wilmington, DE

Required for all Delaware LLCs. Annual Report and Franchise Tax are separate ongoing requirements.

Applies to all Delaware entities including LLCs. Tax based on authorized shares or assets.

Required for individuals to practice as CPA in Delaware. Prerequisites: 150 semester hours education, pass CPA exam, 1 year experience.

Required for LLCs/firms offering CPA services in Delaware. Must have at least one Delaware-licensed CPA owner/partner (51% ownership).

Required if business operates under name different from Certificate of Formation name. No renewal required unless name changes.

Delaware requires Professional Service LLCs (PSLLC) for licensed professions. Must amend standard LLC formation.

Delaware does not impose a state-level sales tax on most services, including professional accounting services. However, if the business sells taxable items (e.g., tax preparation software), registration may be required. Delaware is a 'gross receipts' state for certain businesses, but not for professional services.

Required for all employers in Delaware who withhold state income tax from employee wages. Even a single employee triggers this requirement.

Employers must register with the Delaware Department of Labor to pay unemployment insurance taxes. Applies to all employers with one or more employees. New employers pay a standard rate for the first few years.

All LLCs formed in Delaware must pay an annual franchise tax of $300, regardless of income or activity. This is not based on revenue or number of employees. Due every year by June 1.

Separate from the franchise tax, all LLCs must file an annual report by June 1. Includes basic business information and a $75 fee. Required even if no business activity occurred.

Even single-member LLCs without employees may need an EIN to open a business bank account or if taxed as a corporation. Obtained via IRS Form SS-4.

By default, a single-member LLC is disregarded and reports income on owner's personal return (due April 15). A multi-member LLC files as a partnership (Form 1065, due March 15). Election to be taxed as S-corp requires Form 1120-S (due March 15).

Delaware imposes a gross receipts tax on most businesses, BUT professional services such as accounting, legal, and CPA services are specifically EXEMPT under Delaware Code Title 30, Section 9702(2). Most CPA firms do not owe this tax.

Required for all businesses; CPA/accounting firms classified under professional services. Online application available.

All businesses need this; professional offices like CPA do not require additional endorsements. See Wilmington Code Ch. 35.

Dover Code Sec. 34-3 requires for all occupations including accounting firms.

Allowed if <25% of home used, no client visits, no employees. County Code Ch. 40, Art. XIII.

Verify zoning district compliance per Wilmington Zoning Code Ch. 58.

Required for monitored systems; Wilmington Code Ch. 14.

Freestanding signs limited to 32 sq ft in commercial zones. County Code Ch. 40, Art. XX.

Dover Code Ch. 11 requires for places of public assembly; basic offices often exempt unless modifications made.

Required for any work needing licensed contractors. Applies county-wide.

Exemptions: Sole proprietors and partners may opt out if they file DWC-1 form. Corporate officers may also elect exclusion. However, if any employee is covered, the business must carry coverage for all employees as defined by law.

While Delaware does not mandate E&O insurance for CPAs, many clients and contracts require it. The Board of Accountancy requires CPAs to maintain professional standards but does not currently enforce E&O insurance as a condition of licensure for individuals or firms.

General liability insurance is not required by Delaware law for accounting businesses unless operating in leased commercial space or under contract requiring it. Considered best practice for protection against third-party bodily injury or property damage claims.

Delaware law requires all motor vehicles operated on public roads to be insured. If the business owns or leases a vehicle, commercial auto insurance with minimum limits of $25,000 bodily injury per person, $50,000 per accident, and $10,000 for property damage is mandatory.

Delaware does not require a surety bond for Certified Public Accountants or accounting firms as a condition of licensure or registration. The Board of Accountancy regulates CPAs under 24 Del.C. Ch. 30 but does not impose bonding requirements.

Accounting firms that do not sell physical products do not need product liability insurance. This is not mandated by Delaware law but may be necessary if the business distributes physical items. Most CPA firms are exempt from this requirement.

Only applicable if the accounting firm hosts events involving alcohol service and holds an alcohol license. Most CPA firms do not require this coverage.

All LLCs, including single-member LLCs, must obtain an EIN if they have employees, file excise, employment, or alcohol/tobacco/firearms returns, or operate in a capacity requiring federal identification. Even if not required immediately, most accounting firms obtain an EIN for banking and professional purposes.

By default, a single-member LLC is disregarded for federal income tax purposes and reports income on the owner’s Form 1040 via Schedule C. A multi-member LLC is treated as a partnership and must file Form 1065. An LLC can elect to be taxed as an S-Corp or C-Corp by filing Form 2553 or Form 8832. Accounting firms must comply with these rules regardless of client services.

All employers with employees must comply with OSHA’s general duty clause and maintain a safe workplace. Most small accounting firms with fewer than 10 employees are exempt from routine inspections but still must comply with safety standards. Required to report work-related fatalities within 8 hours and hospitalizations within 24 hours.

Accounting firms that serve clients in-person must ensure physical access and effective communication for people with disabilities. Increasingly, DOJ interprets ADA to include website accessibility for client portals and service information. Applies regardless of business size.

Standard accounting/CPA firms do not generate hazardous waste or emit pollutants and are not subject to EPA regulations. This requirement does not apply unless the business engages in non-typical activities (e.g., on-site chemical use, large-scale printing with solvents).

The FTC enforces truth-in-advertising laws. Accounting firms must ensure all marketing (website, social media, brochures) is truthful, not misleading, and substantiated. Claims such as “lowest fees” or “guaranteed audit protection” may require evidence. Applies to all businesses offering services to consumers.

All U.S. employers must verify identity and work authorization for employees using Form I-9. Applies to LLCs with employees. Employers must retain Form I-9 for 3 years after hire date or 1 year after employment ends, whichever is later.

FLSA requires payment of federal minimum wage and overtime (1.5x regular rate for hours over 40/week). Most accounting firm employees (e.g., staff accountants) are non-exempt and must be paid overtime unless they meet specific exemption criteria (executive, administrative, professional). Applies to all employers with employees.

FMLA requires covered employers to provide eligible employees up to 12 weeks of unpaid, job-protected leave per year for qualifying medical or family reasons. Most small accounting firms do not meet the 50-employee threshold, but must comply if they grow to that size.

As of January 1, 2024, all LLCs must file a Beneficial Ownership Information (BOI) report with FinCEN under the Corporate Transparency Act (CTA). This is a federal requirement specific to business entities and applies to accounting firms structured as LLCs. Accountants are not exempt simply because they are professionals. This is a new federal reporting requirement aimed at combating money laundering.

While the IRS does not require CPAs to hold a federal license, any individual who prepares or assists in preparing federal tax returns for compensation must obtain a Preparer Tax Identification Number (PTIN). CPAs are exempt from the competency testing and continuing education requirements that apply to non-CPA preparers, but must still register and obtain a PTIN. This is a federal requirement specific to tax preparation services.

All Delaware LLCs must file an Annual Report and pay the $300 franchise tax by June 1 each year. Failure to file results in administrative dissolution. The report includes business name, principal address, registered agent, and management structure.

Delaware does not require periodic renewal of the general state business license once issued. However, businesses must maintain active status by paying taxes and filing reports. Specific professional licenses (e.g., CPA) have separate renewal cycles.

CPA licenses in Delaware are renewed every two years. The next renewal cycle ends December 31, 2025. Licensees must complete continuing education requirements prior to renewal.

Delaware requires 80 hours of CPE every two years, including 2 hours in ethics. At least 20 hours must be completed each calendar year. Self-study is allowed up to 50% of the requirement. See Regulation 11.1.

EIN is a one-time assignment, but businesses must use it for all federal tax filings. Employers must file quarterly (Form 941) and annually (Form 940) tax returns.

Employers must register for withholding tax and file Form WH-1. Frequency (monthly or quarterly) is determined by the state based on liability. New employers typically start with monthly filing.

Delaware does not impose a general sales tax on goods, but a gross receipts tax applies to certain services and business transactions. Most businesses in the accounting sector are subject to gross receipts tax on service income. Filing frequency is assigned by the state.

The IRS recommends keeping business records for at least 3 years from the date the return was filed or 7 years if claiming a loss. Employment tax records must be kept for at least 4 years. Includes income, expenses, employment, and asset records.

Delaware requires retention of books, records, and invoices supporting tax filings for at least 3 years. Applies to income, withholding, and gross receipts tax records.

The Delaware state business license must be visibly displayed at the business’s principal place of operation. Not required for home-based or fully remote businesses.

Delaware Board of Accountancy requires that the original CPA license be displayed in the office where services are rendered.

Required posters include the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), Equal Employment Opportunity (EEO), and OSHA Workplace Safety. Must be visible to employees.

Required posters include Delaware Minimum Wage, Workers’ Compensation, and Unemployment Insurance. Available for free download from the Delaware Department of Labor.

Self-employed individuals and LLCs taxed as pass-through entities must make quarterly estimated tax payments for income and self-employment tax.

Accounting services are subject to Delaware’s gross receipts tax. Businesses must file Form GRT-1 and remit tax based on filing frequency assigned by the state.

Most small accounting firms are exempt from routine OSHA inspections and injury logging due to low-risk classification. However, all employers must report fatalities or serious injuries within 8–24 hours.

Employers must file Form UI-3/40 each quarter and pay unemployment insurance tax. New employers are assigned a standard rate.