Apart from other federal and State level taxes, any company incorporated in Delaware are liable to file an Annual Franchise Tax Report and pay Franchise Tax annually for being incorporated within the State. This also includes companies incorporated in Delaware but not conducting business in Delaware as well.
As for the exempt companies, even though they are not to pay the tax, they are still required to file the Annual Report. In terms of Limited Partnerships, Limited Liability Companies, and General Partnerships, the situation is the opposite as they are not required to file an Annual Report but to pay the tax.
The due amount differs based on the method the company in question uses for its shares and capitals. For instance, in terms of companies using authorized shares, the tax amount starts from $175.00, whereas the ones using the assumed par value capital method is liable to pay at least $400.00.
The penalty for not filing a completed Annual Report on time is $200.00 and an interest rate of 1.5% per month to any unpaid tax.
Tips
- The annual reports must be filed electronically.
- Please note that the due date for the Franchise Taxes and Annual Reports are on March 1 of each year. The State directly notifies the registered agent of the company before the due date.
- There is a report filing fee of $50.00 for filing the Annual Report.
