Accounting & Bookkeeping

Delaware Franchise Tax

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. This tax has nothing to do with the income or activity of the company. The state of Delaware requires you to maintain it as the standing status of your company.

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

DUE DATES Delaware Franchise Tax

  • The due date of your tax varies based on the company.
  • The Franchise Tax for following due by:
A corporationA Delaware LLCA limited partnership (LP)
March 1 of every yearJune 1 of every yearJune 1 of every year

* If we do not pay the tax by June 1, the state imposes a $200 late penalty, plus a monthly interest fee of 1.5 per-cent as the result.

COMPANY DOCUMENTS

  • It requires companies 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 those officers.
  • If the tax is being calculated with the assumed par value capital method, then the gross assets and issued shares are also to be listed.