Delaware Letter from Individual Partner to Clients

State:
Multi-State
Control #:
US-L06033B
Format:
Word; 
PDF; 
Rich Text
Instant download

Description

This is a letter from a withdrawing partner to the clients he has represented at his former firm. The letter is also mailed with an enclosure that gives the clients the options of transferring their files with the withdrawing attorney, remaining with the same firm, or choosing another firm to represent them. This letter includes an example of the enclosure with the file transfer options.

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FAQ

A PARTNERSHIP RETURN MUST BE COMPLETED BY ANY BUSINESS TREATED AS A PARTNERSHIP FOR FEDERAL PURPOSES WHICH HAS ANY INCOME OR LOSS, REGARDLESS OF AMOUNT, DERIVED FROM OR CONNECTED WITH A DELAWARE SOURCE. IF THE PARTNERSHIP HAS NO DELAWARE SOURCED INCOME OR LOSS, NO RETURN IS REQUIRED TO BE FILED.

Partnerships allow flexibility and control while giving the partners a way to share business revenue effectively and with little government interference. From a tax standpoint partnerships are almost always pass-through entities.

What is a Delaware Limited Partnership? Delaware Limited Partnerships (DLPs) are a type of business entity in the United States. They are formed by filing a certificate of limited partnership with the Delaware Secretary of State. DLPs have two types of partners: general partners and limited partners.

There are no taxes on the partnership level, unless you're a non-resident of Delaware. All income flows through to the personal level via a K-1 Form. Taxes are paid here pro-rata income reported on the K-1 Form.

A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" profits or losses to its partners.

Delaware LLCs taxed as S-corp S-corps don't have to pay corporate income tax like C-corps. Instead, S-corps are taxed as pass-through entities by default, like LLCs. S-corps pass their revenue on to their owners as distributions, and S-corp owners pay personal income taxes on their earnings.

Partnerships must file by the 15th day of the third month following the expiration of the taxable period (March 15 for calendar year taxpayers). Returns should be mailed to the Delaware Division of Revenue, P.O. Box 8703, Wilmington, DE 19899-8703.

Delaware Law requires every entity to appoint a Registered Agent with a physical office address in the State of Delaware. If the entity is not physically located in Delaware, they must appoint a Registered Agent to fulfill the requirement.

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Delaware Letter from Individual Partner to Clients