Are there any hidden fees?
Nope, no hidden fees. But you’re responsible for your home state registration fees, taxes, and probably some additional costs of doing business.
As part of the Gust Launch package, we have you covered for all of your Delaware incorporation fees and services, from state filing fees, to the costs of setting up your corporate documents, filing with the IRS, and even your annual registered agent fees in Delaware (that’s why we established Gust Delaware: so that we could save you hundreds of bucks a year.) The ONLY thing your Gust Launch fee doesn’t cover during setup is the cost of filing your “Foreign Qualification” in your home state. This is required by law if you’re going to operate a business in a state where you are not incorporated (and remember, you’ll be incorporated in Delaware, because that is pretty much required for later investment.) The problem is that state qualification costs differ wildly by state, from $139 in Kentucky all the way to $634 in Illinois. Since there is no way for us to standardize that wide a range, you will be charged separately for that one piece. But otherwise, every fee and charge necessary for your incorporation and filing is included in your flat Gust Launch fee.
You will also be responsible for an annual franchise tax to Delaware to remain a corporation in good standing. Again, because this varies from case to case, we can't include it as part of your package. As a general guide, figure about $400 annually. Corporations incorporated in Delaware but not conducting business in Delaware are not subject to corporate income tax, but they do have to pay a Franchise Tax administered by the Delaware Department of State. You will have to file an Annual Franchise Tax Report and pay Franchise Tax by March 1st of each year. As your registered agent, Gust Delaware will receive an annual Franchise Tax Notification from the state, which we will pass on to you. The filing fee for the Annual Report is $50, and the minimum Franchise Tax is $350.00 for corporations using the Assumed Par Value Capital Method. The penalty for not filing a completed Annual Report on or before March 1st is $125.00, with interest at 1.5% per month is applied to any unpaid tax balance.
Aside from these fees and charges, there are several other situations in which you might incur additional costs by using Gust Launch. Before we get into them, we would like to stress that these are not costs created by Gust Launch, and that we don't charge a percentage or in any way benefit from these additional, elective costs. However, in the interest of transparency, we'd like to bring them to your attention:
- Winding down your business or transferring to another registered agent: If you choose to stop using Gust Launch, whether because your business is shutting down or because you've simply chosen to replace all of the benefits of Gust Launch with other providers, you'll need to pay a fee to the state of Delaware to account for this change.
- Additional legal services: You are responsible for doing the work to ensure that your law firm fits the needs of your business. Although Gust Launch only includes lawyers that meet our vetting criteria, we are not legally able to ensure that they are a specifically apt match for your business. That said, the law firms in our network are high-quality, professional, and capable, so they will be able to perform the work you might reasonably require of them. Note, however, that the cost for legal work beyond the one hourly credit you receive per month will be billed at the rate you agree on with your counsel when you sign a letter of engagement.
- Local, state, and federal taxes: While we make it easy for you to file your tax returns, you're still required to pay your various tax obligations to local, state, and federal governments.
- Amendments to legal documents provided through incorporation: Should you eventually need to change any of the agreements we create as part of your company formation (which is unlikely but possible), this will fall outside the scope of the service and require lawyer time.
- Standard banking fees: Like all banks, Metropolitan Capital Bank charges a small fee for some actions that you will likely take in the course of your business's operations. For more information about these costs, please consult the FAQ answer, "What are the costs of operation for my Metropolitan Capital Bank account?"