Block Incorporators
Delaware Annual Franchise Tax Report Filing Services
Delaware Annual Franchise Tax Report Filing Services
File your Delaware Annual Franchise Report and Pay Your Franchise Tax
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
What are the consequences of not complying?