Harvard Business Services, Inc
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.
What is an annual report?
- The annual report fee is $50 and the tax would be somewhere between $200 and $200,000 per year, as illustrated below.
- If the tax is not paid on or before March 1, the state imposes a $200 late penalty, plus a monthly interest fee of 1.5%.
- 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 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.
When Is The Delaware Franchise Tax Due Date?
Our annual Registered Agent Fee is $50 per year, and is due on the anniversary month of the formation of your company. Yes, regardless of your Delaware company activity or not conducting business, you are still required to pay the Delaware Franchise Tax to remain in Good Standing. If your company is no longer active and you wish to close your business, be sure to follow the proper steps to Dissolve a Corporation, or Cancel an LLC.
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.
If the tax is not paid on or before March 1, the state imposes a $200 late penalty, plus a monthly interest fee of 1.5%. Now that you know the basics of what’s included in the Delaware annual report, follow these easy steps when it’s time to file. This is not the same as your Delaware annual report and will not mention internal company information, such as director or officer details.
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 average collection period meaning formula 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.
Do all business entities need to file an annual report in Delaware?
He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf. The Delaware Franchise Tax is a very important part of the state’s revenue, and it is crucial that you pay it on time and in full.
The Delaware Franchise Tax has no bearing on income or company activity; it is simply required by the State of Delaware to maintain the good standing status of your company. If you’re ready to file and pay your Delaware Franchise Tax now, please visit our online Franchise Tax payment form. Choose from our standard or rush packages, answer a few questions, and then focus on your daily operations while we file your annual report by the deadline.
In this blog post, we will discuss what the Delaware franchise tax is, how to pay it, and some of the exemptions that may apply to your business. The Delaware Franchise Tax and the Registered Agent Fee are two separate, unrelated fees. The annual Franchise Tax is imposed by the State of Delaware and varies with the size of your business. The annual Registered Agent Fee is a fixed amount paid to Harvard Business Services, Inc. to act as an agent for your entity in the state. LLCs, limited partnerships, and general partnerships in Delaware pay a flat franchise tax of $300.