Delaware franchise tax filing service

Key findings and summary (state-specific, Delaware): - Deadlines: - Delaware domestic corporations: Annual Report + Franchise Tax due on or before March 1 each year (file online). Failure to file/pay by March 1 triggers a $200 penalty plus 1.5% interest per month on tax and penalty. - Delaware LLCs/LPs/GPs: No annual report required, but must pay an annual tax of $300.00 on or before June 1 each year.

Late payment penalty: $200 plus 1.5% interest per month on tax and penalty. - Who pays what: - All active domestic corporations incorporated in Delaware must file an Annual Report and pay franchise tax (privilege of incorporation), unless exempt by statute. - All domestic and foreign LLCs, LPs, and GPs formed or registered in Delaware must pay the $300 annual tax (even if inactive in many cases unless formally dissolved). - Franchise tax amounts and calculation (corporations): - Two calculation methods: Authorized Shares Method and Assumed Par Value Capital Method (see state calculator link). - Minimum taxes: $175 (Authorized Shares method) and $400 (Assumed Par Value method). - Maximum tax: $200,000 for most filers; identified Large Corporate Filers have a $250,000 maximum. - Corporations with tax liability $5,000 or more are subject to estimated quarterly/prepaid tax requirements (schedules and installments for estimated tax payments apply). - Payments and filing process: - Delaware requires online filing for Annual Reports and electronic payment for taxes. - Payment options include ACH debit and credit card (Visa, MasterCard, American Express, Discover); ACH/EFT required for certain large payments (e.g., transactions over $5,000).

The state provides an online portal to pay franchise taxes. - The Division of Corporations provides online calculators and instructions (methods of calculating franchise tax link). - Penalties and consequences: - Late filing/payment penalty for corporations: $200 plus interest at 1.5% per month on tax and penalty; analogous penalty/interest applies to LLCs/LPs/GPs for the $300 tax ($200 penalty + 1.5% monthly interest). - Continued noncompliance can result in loss of good standing, administrative dissolution or revocation, and difficulty obtaining certificates of good standing for banking, financing, or M&A. - Practical compliance guidance and recommended steps: - Confirm entity status and registered agent contact info to ensure state notices are received; consider a reliable Delaware registered agent service. - Mark key annual deadlines: March 1 (corporations) and June 1 (LLCs/LPs/GPs) and build reminders at least 60–90 days ahead. - For corporations, run both Authorized Shares and Assumed Par Value calculations annually to minimize tax; consult counsel/accountant before changing authorized shares as part of tax planning. - For entities with low activity or intended dormancy: formally dissolve or withdraw entities you no longer need to avoid recurring taxes. - Use the state online portals for payment to avoid scams and verify any solicitations; the Division of Corporations warns about deceptive third-party solicitations. - If franchise tax liability is expected to exceed $5,000, plan for estimated payments and required electronic payment (EFT/ACH) options. - Keep records of filings and payments and obtain certificates of good standing as needed for banking/transactions.

Key findings and summary (state-specific, Delaware):

- Delaware domestic corporations: Annual Report + Franchise Tax due on or before March 1 each year (file online). Failure to file/pay by March 1 triggers a $200 penalty plus 1.5% interest per month on tax and penalty. - Delaware LLCs/LPs/GPs: No annual report required, but must pay an annual tax of $300.00 on or before June 1 each year.

Late payment penalty: $200 plus 1.5% interest per month on tax and penalty.

- All domestic and foreign LLCs, LPs, and GPs formed or registered in Delaware must pay the $300 annual tax (even if inactive in many cases unless formally dissolved).

- Minimum taxes: $175 (Authorized Shares method) and $400 (Assumed Par Value method). - Maximum tax: $200,000 for most filers; identified Large Corporate Filers have a $250,000 maximum. - Corporations with tax liability $5,000 or more are subject to estimated quarterly/prepaid tax requirements (schedules and installments for estimated tax payments apply).

- Payment options include ACH debit and credit card (Visa, MasterCard, American Express, Discover); ACH/EFT required for certain large payments (e.g., transactions over $5,000). The state provides an online portal to pay franchise taxes.

- Late filing/payment penalty for corporations: $200 plus interest at 1.5% per month on tax and penalty; analogous penalty/interest applies to LLCs/LPs/GPs for the $300 tax ($200 penalty + 1.5% monthly interest).

- Mark key annual deadlines: March 1 (corporations) and June 1 (LLCs/LPs/GPs) and build reminders at least 60–90 days ahead.

- If franchise tax liability is expected to exceed $5,000, plan for estimated payments and required electronic payment (EFT/ACH) options.

• Deadlines:
• Who pays what:
• All active domestic corporations incorporated in Delaware must file an Annual Report and pay franchise tax (privilege of incorporation), unless exempt by statute.
• Franchise tax amounts and calculation (corporations):
• Two calculation methods: Authorized Shares Method and Assumed Par Value Capital Method (see state calculator link).
• Payments and filing process:
• Delaware requires online filing for Annual Reports and electronic payment for taxes.
• The Division of Corporations provides online calculators and instructions (methods of calculating franchise tax link).
• Penalties and consequences:
• Continued noncompliance can result in loss of good standing, administrative dissolution or revocation, and difficulty obtaining certificates of good standing for banking, financing, or M&A.
• Practical compliance guidance and recommended steps:
• Confirm entity status and registered agent contact info to ensure state notices are received; consider a reliable Delaware registered agent service.
• For corporations, run both Authorized Shares and Assumed Par Value calculations annually to minimize tax; consult counsel/accountant before changing authorized shares as part of tax planning.
• For entities with low activity or intended dormancy: formally dissolve or withdraw entities you no longer need to avoid recurring taxes.
• Use the state online portals for payment to avoid scams and verify any solicitations; the Division of Corporations warns about deceptive third-party solicitations.
• Keep records of filings and payments and obtain certificates of good standing as needed for banking/transactions.