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Delaware Franchise Tax

Delaware Franchise Tax

Delaware Franchise Tax

Franchise Tax is the tax collected by the state of Delaware for the right to own a Delaware company. The tax has got nothing to do with the income or activity of the company. It is simply required by the state of Delaware to maintain the standing status of your company.

The term “Franchise Tax” does not mean that the tax is only applicable to a franchise business.

DUE DATES Delaware Franchise Tax

  • The due date of your tax varies based on the type of company.
  • The Franchise Tax:
For a corporationFor a Delaware LLCFor a limited partnership (LP)
due by March 1 of every yeardue by June 1 of every yeardue by June 1 of every year

* 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 per cent.

COMPANY DOCUMENTS

  • Companies are required to submit an annual report alongside their Franchise Tax payment.
  • The report must list the company’s physical address (not a P.O. box and not your Registered Agent’s address).
  • It has to have the name and physical address of all the board of directors and if there are any officers, the name, title and physical address of one of the officers.
  • If the tax is being calculated with the assumed par value capital method, the gross assets and issued shares are also to be listed.

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