Block Incorporators

Delaware Annual Franchise Tax Report Filing Services

Delaware Annual Franchise Tax Report Filing Services

Regular price $99.00
Regular price Sale price $99.00
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File your Delaware Annual Franchise Report and Pay Your Franchise Tax

The time to file the Delaware Annual franchise tax report and pay the annual franchise tax is upon us.
Submitting the payment and report on your own is a breeze, but we understand some entities have registered agent file the forms.
Block Incorporators is offering Delaware Annual Report Filing Services for $99 plus $50.00 filing fee and tax assessed by Delaware.
Tax and filing fee will be invoiced separately.

The franchise tax and annual report for Delaware corporations is required to be submitted by March 1.

Who is responsible for filing and paying?

All for-profit corporations that are incorporated in Delaware must satisfy the annual franchise-tax requirement. This applies regardless of whether the corporation conducts business in Delaware or generates any income there. It is not an income tax; rather, it is a franchise tax. This payment grants the privilege of incorporation and existence as a Delaware corporation. Non-profit corporations are usually exempt from the franchise tax. However, they must still submit an annual report by March 1st and pay a filing fee of $25.

How much will my corporation owe?

The filing fee is $50, plus the franchise tax. This tax can be calculated using one of two methods. The default method is the Authorized Shares method, where the state calculates the tax and determines the amount due. However, the corporation can also calculate it using the Assumed Par Value Capital Method. The "Authorized Shares" method requires a minimum tax of $175 and a maximum of $200,000, depending on the number of shares the corporation can issue as set forth in its certificate of incorporation.) The tax is calculated as follows:

  • 1 to 5,000 shares: $175
  • 5,001 to 10,000 shares: $250
  • Each additional 10,000 shares or portion thereof add $85
"Under the 'Assumed Par Value Capital' method, the annual tax for corporations is determined based on their assumed par value capital. The minimum tax is $400 and the maximum tax is $200,000, unless the corporation is classified as a Large Corporate Filer. In this case, the annual tax is $250,000. Large Corporate Filers are corporations with stock listed on a national securities exchange and consolidated annual gross revenues or assets equal to or greater than $750 million. They are also required to pay estimated taxes in quarterly installments if they owe $5,000 or more."

What are the consequences of not complying?
Avoid a $200 penalty by submitting a complete report on time. Additionally, a company may not receive a Certificate of Good Standing from the Secretary of State if it has unpaid franchise taxes or an incomplete report. Failure to pay franchise taxes or submit a complete report for multiple years can result in the revocation of a company's charter.


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