Visit the Delaware Division of Corporations’ online portal for filing annual reports. The corporate-friendly climate in Delaware motivates many people to start their business endeavors in the state. If you’re considering forming a Delaware corporation, you need to be familiar with state regulations and requirements, including those for annual reports. In addition, every corporation that is incorporated in Delaware or does business in Delaware has to file a yearly report with the state of Delaware. The report is due by March 1st and must include information about the corporation’s assets and liabilities. Corporations must complete an annual report along with their Delaware Franchise Tax payment.
How to File a Delaware Annual Report
- This is not the same as your Delaware annual report and will not mention internal company information, such as director or officer details.
- If you have any questions about the tax or how to pay it, be sure to consult the official website or contact the Department of Finance.
- Fortunately, LegalZoom’s Compliance Filings can take some of the work off your plate.
- The total cost of the corporation’s Delaware Franchise Tax consists of an annual report fee and the actual tax due.
- If your business falls into one of these categories, you will not have to pay the Delaware Franchise Tax.
The total cost of the corporation’s Delaware Franchise Tax consists of an annual report fee and the actual tax due. For exempt and non-exempt domestic corporations, the deadline to submit a Delaware annual report is March 1. In Delaware specifically, the annual report informs how much franchise tax the company owes; annual reports are submitted annually along with the amount of franchise tax due.
Step 2: Go to the Delaware Division of Corporations website
Owners of multiple corporations will need to pay Delaware Franchise Tax for each entity separately as each entity is required to file an annual report. A non-stock/non-profit company is considered exempt by the State of Delaware. This type of company does not pay the standard annual Delaware Franchise Tax, but must still file and pay the annual report fee of $25 per year. Paying a franchise tax is a legal requirement for business incorporated in the state of Delaware. Failure to pay the annual franchise tax can result, in penalties, fines, or even the loss of right to conduct lawful business.
For non-exempt domestic corporations, both exempt and non-exempt, the penalty is $200, plus 1.5% interest each month. The State of Delaware is known for its corporate laws, which require all corporations incorporated in the state to file an Annual Report and pay taxes. This includes exempt domestic companies that do not have reporting obligations but still must be submitted with their annual filings at $25 per filing or amended report fee instead. In order to utilize this filing method, you will need to provide the company’s total gross assets (as reported on Form 1120, Schedule L) and the total number of issued shares. The tax is then often calculated to the minimum payment of $400 tax plus the $50 annual report fee, for a total of $450 due per year.
Do I Need to Submit Anything Else With My Delaware Franchise Tax Payment?
When choosing a registered agent and satisfying that requirement, you’ve got some options. After paying their Delaware Franchise Tax, many business owners require a Delaware Certificate of Good Standing. The term “Franchise Tax” does not imply that your company is a franchise business. Franchise Tax is the fee imposed by the State of Delaware for the right or privilege to own a Delaware company.
Only corporations—exempt domestic, non-exempt domestic, and foreign—need to file an annual report in Delaware. Domestic and foreign limited liability companies (LLCs), limited partnerships, and general partnerships registered in Delaware do not file annual reports, but they are required to pay an annual franchise tax of $300 by June 1 every year. If they don’t pay by this date, there is a $200 penalty, plus 1.5% interest each month. Delaware annual report filings not only require time out of your busy daily schedule to ensure that your form isn’t missing any necessary information, but they also can incur late fees if not submitted on time. The Delaware Franchise Tax is a tax levied on businesses that are registered in the state of Delaware.
The revenue and cash budgets due date of your Delaware Franchise Tax payment varies, depending on your company type. The Franchise Tax for a Delaware LLC or a Delaware LP is a flat annual rate of $300. Read on to find out how much you’ll pay, or visit our Delaware Franchise Tax calculator app for a quick answer. Fortunately, LegalZoom’s Compliance Filings can take some of the work off your plate.