Tax Preparer Permits & Licenses in Newark, DE

Required for all LLCs; annual tax of $300 due June 1 (separate from formation)

All Delaware LLCs must file; filed online via Division portal

Required if using trade name/DBA; renewable upon name change

Applies to all businesses; obtained after Division of Corporations registration

Required for employers; tax preparer LLC likely needs if hiring staff

Tax preparation services generally exempt; required only if selling products

Tax preparation services are generally NOT subject to Delaware sales tax. However, if the business sells software, forms, or other tangible goods, sales tax registration may be required. See Del. Code Tit. 30 § 4103(10)(a)(11) for exclusions.

Required for employers who withhold Delaware income tax from employee wages. Applies to all employers with employees working in Delaware.

All employers with one or more employees must register. New employers pay 2.4% on first $18,500 of each employee's wages (2024 rate).

All Delaware LLCs must pay an annual franchise tax of $300 regardless of income or activity. Due each year by June 1. Failure to pay results in administrative dissolution.

Required for all LLCs. Filed online with the franchise tax payment. Includes updated business information.

Even single-member LLCs without employees may need an EIN to open a business bank account or file as a disregarded entity. Apply online via IRS website.

Single-member LLCs are disregarded entities and report income on owner’s Form 1040 (Schedule C). Multi-member LLCs file Form 1065. Tax preparer businesses typically report income via Schedule C.

Delaware does not have a general gross receipts tax. However, businesses must register for business tax if they derive income from Delaware. This is administrative, not a tax. No tax is levied unless sales tax applies (which it generally does not for tax preparation services).

Most Delaware municipalities (e.g., Wilmington, Dover) require local business licenses. Requirements vary. For example, Wilmington requires a privilege tax license. Check with city clerk. Tax preparers may be classified under 'Professional Services'.

Required for all businesses; tax preparers not exempt. Apply online or in person. Fee schedule updated 2023.

Wilmington requires its own license even if in New Castle County. Tax preparers classified as professional service.

Flat fee for most professional services like tax preparation. No gross receipts multiplier.

Tax preparers fall under general business category. 2024 fee schedule confirms structure.

Allowed in most residential zones if no client visits, <25% home used, no external signage. Check local zoning map/code (e.g., New Castle Ch. 40 Art. III).

Tax preparer offices typically permitted in B-1/B-2 commercial zones. Confirm via local zoning ordinance (e.g., Wilmington Code Ch. 58).

Size, lighting, setback restrictions per zoning code. Wall signs typically allowed for professional offices.

Local fire dept conducts; required for >50 occupants or assembly use. Tax offices usually low hazard.

Office fit-outs often trigger review for ADA, egress. No permit if cosmetic only.

Required to register with police/fire dispatch. Excessive false alarms increase fees.

Mandatory for all employers with one or more employees in Delaware, including part-time workers. Sole proprietors without employees are exempt but may elect coverage. Employers must obtain coverage from a licensed insurer or qualify as a self-insurer.

While not mandated by Delaware state law, the IRS requires tax preparers who e-file 10 or more returns to carry a minimum of $100,000 in professional liability insurance (errors and omissions) as part of the e-file application process. This applies to all e-file providers regardless of state.

The IRS requires a $5,000 non-lookback tax return preparer bond for all non-attorney, non-CPA paid preparers who wish to e-file. This is part of the e-file application process. Delaware does not impose an additional state-level surety bond for tax preparers.

General liability insurance is not legally required by Delaware for tax preparers unless mandated by a lease agreement or third-party contract. However, it is strongly recommended to protect against claims of property damage or bodily injury. No state statute mandates it for this business type.

Delaware law requires all motor vehicles registered in the business name to carry minimum liability coverage: $25,000 bodily injury per person, $50,000 per accident, and $10,000 for property damage. This applies regardless of business type if a commercial vehicle is used.

Tax preparers in Delaware do not typically sell physical products. No state or federal law mandates product liability insurance for this business type unless tangible goods (e.g., software on physical media, tax preparation kits) are sold. Not applicable under standard operations.

Liquor liability insurance is only required if the business holds a liquor license. Tax preparers are not required to serve or sell alcohol; this does not apply to standard operations.

All businesses operating in Delaware, including LLCs providing tax preparation services, must obtain a Delaware State Business License. This is not industry-specific insurance or bonding but a foundational legal requirement. Administered by the Division of Revenue.

Required for all LLCs, including single-member LLCs that are disregarded entities. Even if no employees, an EIN is needed to file business tax returns or open a business bank account. Not required solely for individual sole proprietors without employees or excise tax obligations, but mandatory for LLCs.

Applies to tax preparer businesses that engage independent contractors (e.g., subcontractors). Form 1099-NEC must be filed for each contractor paid $600 or more. This is a federal reporting requirement specific to businesses making reportable payments.

All tax preparers who file federal returns electronically must register with the IRS e-Services system and obtain a PTIN. This is mandatory for any paid tax preparer, regardless of state. Part of IRS e-file requirements for tax professionals.

Required for every individual who prepares or assists in preparing federal tax returns for a fee. Must be renewed annually. This is a federal requirement specific to tax preparers. LLC entity does not receive PTIN—each preparer must have one.

IRS Circular 230 governs the conduct of tax professionals before the IRS. Applies to all paid tax return preparers. Includes requirements for due diligence, accuracy, and ethical conduct. Violations can lead to disciplinary action. Specific to tax preparer profession.

Required for tax professionals who file 11 or more returns electronically. Must file Form 8946 to declare participation in IRS e-file program. This is a federal mandate specific to tax preparers.

Applies to all employers in the U.S., including LLCs. Tax preparer businesses with employees must complete Form I-9 for each employee. Not specific to tax preparers but required for any employer.

Requires payment of federal minimum wage and overtime for non-exempt employees. Applies to tax preparer businesses with employees. Includes proper classification of employees vs. independent contractors. Generic employer requirement, but critical for compliance.

Requires eligible employers to provide up to 12 weeks of unpaid, job-protected leave annually. Only applies to tax preparer businesses meeting employee threshold. Generic federal employment law, not specific to tax industry.

Requires tax preparers to ensure accessibility for people with disabilities in physical offices and digital platforms (e.g., websites). Applies to all public-facing businesses. While not tax-specific, it is a federal mandate for client-facing operations.

All employers with employees must display the OSHA Job Safety and Health Poster (OSHA 2206). Tax preparer offices are generally low-risk, but posting is mandatory. Generic federal requirement for employers.

Prohibits misrepresentation in advertising (e.g., “guaranteed refunds”). Requires retention of records for three years. Applies specifically to tax preparers under FTC’s authority. Includes prohibitions on charging contingent fees for preparing Form 1040s.

All Delaware LLCs must file an Annual Report and pay the $300 franchise tax by June 1 each year. This is a mandatory requirement regardless of business activity. The report includes basic company information such as principal place of business, registered agent, and management structure.

Voluntary program for non-credentialed tax return preparers. Requires 15 hours of continuing education annually (including 3 hours of ethics), passing an annual competency test, and adherence to Circular 230 rules. Completing the program allows inclusion in the IRS Directory of Federal Tax Return Preparers. Does not replace state licensing.

Delaware requires all tax preparers who prepare returns for compensation to register with the Division of Revenue. Registration is valid for two years. The next renewal cycle is due January 31, 2025, then January 31, 2027, etc. Registration must be renewed even if no changes occurred.

All paid tax preparers must have a valid PTIN. The PTIN must be renewed annually by December 31, even if no changes. The fee is subject to change; check IRS website for current rate. This is a federal requirement applicable in all states, including Delaware.

Employers must file Form WH-10 annually by January 31 to reconcile withheld state income taxes. While registration does not expire, ongoing compliance with withholding deposits and filings is mandatory. Failure to file or pay on time results in penalties.

Employers must file quarterly wage reports (Form UI-3X) and pay unemployment insurance taxes. The tax rate is determined annually based on employer history. No formal 'renewal' but ongoing reporting and payment obligations. First report due by April 30 following first hire.

Delaware does not impose a general sales tax, but businesses selling taxable items (e.g., digital products, software) or meeting economic nexus thresholds must register and file returns. Registration does not expire, but businesses must file Form ST-100 annually or more frequently if required. No renewal fee.

Tax preparers must prominently display their Delaware Tax Preparer Registration certificate at their place of business. Additionally, the LLC's business license or certificate of formation should be visibly posted if operating from a storefront or office.

Employers must display current federal and Delaware labor law posters, including Minimum Wage, Equal Employment Opportunity, Family and Medical Leave Act (FMLA), and Workers’ Compensation. Posters must be visible to employees. Delaware-specific posters available at https://dol.delaware.gov/posters.shtml. Failure to post may result in penalties.

IRS requires tax preparers to retain copies of all tax returns prepared and related documentation (e.g., engagement letters, W-2s, 1099s) for at least three years from the date the return was filed. Some records (e.g., PTIN applications, continuing education) should be kept longer. Delaware does not have additional record retention laws specific to tax preparers.

Enrolled Agents (EAs) must complete 72 hours of continuing education every three years (minimum 2 hours per year on ethics). CE must be from IRS-approved providers. This is a federal requirement and applies regardless of state of operation.

Delaware does not require a general state business license. However, some municipalities (e.g., Wilmington) may require local business licenses or permits. Check with local government. No state-level renewal, but local requirements may vary.

Self-employed tax preparers (or LLCs with pass-through income) must make quarterly estimated tax payments if they expect to owe $1,000 or more. Due dates are April 15, June 15, September 15, and January 15 of the following year. Payments include income and self-employment taxes.

Individuals and pass-through entities (like LLCs) must make quarterly estimated state tax payments if they expect to owe $200 or more. Due dates align with federal estimated payment deadlines. Use Form IT-4229.