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. A corporation with 5,001 authorized shares or more is considered a maximum stock corporation.
All tax notices are printed in December of the year that tax is due and sent to the Registered Agent. The Registered Agent is designated by the corporation through the initial formation or a filing submitted by the corporation that designates another Delaware Registered Agent. Please contact Delaware Business Incorporators, Inc. if you require another copy of your notice. You can find more comprehensive information about franchise tax rates, how to calculate Delaware franchise tax, and tax calculators here.
Filing your cpa accounting taxation and bookkeeping outsourcing services Delaware franchise tax is a simple, online process. After paying their Delaware Franchise Tax, many business owners require a Delaware Certificate of Good Standing. If you’re ready to file and pay your Delaware Franchise Tax now, please visit our online Franchise Tax payment form.
How Do I Pay My Delaware Franchise Tax?
Delaware provides a favorable tax shelter for U.S. corporations. There are other states, such as Nevada, that also do this. This leads to a high number of businesses being incorporated in those tax shelter states.
I haven’t started doing business yet. Do I still have to file a report and pay taxes?
The Secretary of State may at any time require a true and correct copy of such schedule to be filed with the Secretary of State’s office. 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.
What Happens if Delaware Franchise Tax Is Paid on Time?
The annual report fee is $50 and the tax would be somewhere between $200 and $200,000 per year, as illustrated below. A corporation with 5,000 authorized shares or less is considered a minimum stock corporation. The Delaware annual report fee is $50 and the kpmg spark review and ratings tax is $175 for a total of $225 due per year. Title 8 Chapter 5 § 503 (i) states such total assets and total gross assets shall be those “total assets” reported to the United States on U.S. Form 1120 Schedule L, relative to the company’s fiscal year ending in the calendar year prior to filing with the Secretary of State pursuant to this section. If such schedule is no longer in use, the Secretary of State shall designate a replacement.
- For questions, contact the Harvard Business Services, Inc.
- Title 8 Chapter 5 § 503 (i) states such total assets and total gross assets shall be those “total assets” reported to the United States on U.S.
- The annual franchise tax is required and paid to the state of Delaware.
- If your business is operating in multiple states, your business may have “nexus” with those other states.
When filing a franchise tax in Delaware, all the must be submitted is the physical address of the business and the name of the registered agent. The goal of the Delaware franchise tax is to make owning a business in Delaware simple. Since the tax payment process is simple, businesses are more likely to want to be incorporated in Delaware. A non-stock/non-profit company is considered exempt by the State of Delaware.
How to Calculate Your Delaware Franchise Tax Fee
This article focuses on businesses that are operating solely in Delaware. If your business is operating in multiple states, your business may have “nexus” with those other states. This means that you’re likely to need to pay taxes in those states.
Read on to find out how much advance from customer you’ll pay, or visit our Delaware Franchise Tax calculator app for a quick answer. Your business may require a Delaware Certificate of Good Standing. Delaware also has no personal property tax or value-added taxes.
If you need assistance in obtaining a Certificate of Good Standing, we can help you receive your certificate in two business days or less. The due date of your Delaware Franchise Tax payment varies, depending on your company type. Title 8 Chapter 5 § 502(a)(4) states that the Annual Report shall list “The names and addresses of all the directors as of the filing date of the report and the name and address of the officer who signs the report.”