Harvard Business Services, Inc

delaware franchise tax due date

Delaware LLCs do not have to complete the annual report, but still pay the $300 Delaware LLC Franchise Tax fee. 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%. If you’re ready to file and pay your Delaware Franchise Tax now, please visit our online Franchise Tax payment form. Harvard Business Services, Inc. guarantees your annual Delaware Registered Agent Fee will remain fixed at $50 per company, per year, for the life of your company.

delaware franchise tax due date

The Delaware Franchise Tax for a corporation is based on your corporation type and the number of authorized shares your company has. The total cost of the corporation’s Delaware Franchise Tax consists of an annual report fee and the actual tax due. 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. 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.

For a discounted rate you can submit your Delaware Franchise Tax payment via our online Franchise Tax form. Corporations, LLCs and LPs are taxed in arrears, meaning what is fifo method: definition and example the tax due by each due date is for the previous calendar year. The franchise tax is due even if the business didn’t conduct any activity or lost money.

Our annual Registered Agent Fee is $50 per year, and is due on the anniversary month of the formation of your company. Harvard Business Services Inc. offers the lowest Registered Agent fee in the industry, and it is guaranteed to remain fixed at $50 per year, as long as the fee is paid https://accountingcoaching.online/ on time and your company remains in good standing with the State of Delaware. As your Registered Agent, we will send you tax reminders both by mail and email, well in advance of the due date. We offer a tax filing service for a small fee in addition to your Franchise Tax amount.

What Is Delaware Franchise Tax?

If your company is no longer operating, it’s important to close your Delaware business and end these fees. 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.

delaware franchise tax due date

A corporation with 5,000 authorized shares or less is considered a minimum stock corporation. The Delaware annual report fee is $50 and the tax is $175 for a total of $225 due per year. 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. A corporation with 5,001 authorized shares or more is considered a maximum stock corporation. The annual report fee is $50 and the tax would be somewhere between $200 and $200,000 per year, as illustrated below.

Delaware Franchise Tax FAQ

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. 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. This is not the same as your Delaware annual report and will not mention internal company information, such as director or officer details.

  1. Franchise Tax is the fee imposed by the State of Delaware for the right or privilege to own a Delaware company.
  2. The HBS Blog offers insight on Delaware corporations and LLCs as well as information about entrepreneurs, startups and general business topics.
  3. Therefore, if you receive a tax bill for tens of thousands of dollars, it may be in your best interest to try calculating your Delaware Franchise Tax with the assumed par value capital method.
  4. A corporation with 5,001 authorized shares or more is considered a maximum stock corporation.

Corporations must complete an annual report along with their Delaware Franchise Tax payment. If the Delaware Franchise Tax calculation uses the assumed par value capital method, the gross assets and issued shares are also to be listed. If you decide to pay your Delaware Franchise Tax for a corporation with us over the phone, the annual report would need to be separately submitted to us by email, fax or mail.

Do I Need to Submit Anything Else With My Delaware Franchise Tax Payment?

After paying their Delaware Franchise Tax, many business owners require a Delaware Certificate of Good Standing. If the tax is not paid on or before June 1, the state imposes a $200 late penalty, plus a monthly interest fee of 1.5%. Read on to find out how much you’ll pay, or visit our Delaware Franchise Tax calculator app for a quick answer.

Since 1981, Harvard Business Services, Inc. has helped form 395,541 Delaware corporations and LLCs for people all over the world. The HBS Blog offers insight on Delaware corporations and LLCs as well as information about entrepreneurs, startups and general business topics. The State of Delaware allows you to pay the lower of the two Delaware Franchise Tax calculation methods. Therefore, if you receive a tax bill for tens of thousands of dollars, it may be in your best interest to try calculating your Delaware Franchise Tax with the assumed par value capital method.

When Is The Delaware Franchise Tax Due Date?

The due date of your Delaware Franchise Tax payment varies, depending on your company type. Franchise Tax is the fee imposed by the State of Delaware for the right or privilege to own a Delaware company. 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 need assistance in obtaining a Certificate of Good Standing, we can help you receive your certificate in two business days or less.

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