In Delaware, corporations are mandated to file an Annual Report and pay the Franchise Tax by March 1 each year. Failure to meet this deadline results in the corporation being declared inoperative and void. By the next calendar year, you must file a franchise tax or an annual report from the previous year. Therefore, by March 1st of the following year, you need to submit a report listing all the company’s directors, along with one officer and their addresses.
At DelawareAgency, we can assist you with this filing. Failing to file the franchise tax jeopardizes your company’s good standing. Even if your company is not actively conducting business, you must still file this tax to maintain its status.
Key Requirements for Maintaining Your Delaware Company
1. Registered Agent: Your Delaware company must have a registered agent with a physical address in Delaware to handle official correspondence from the Secretary of State and other processes.
2. Paying Delaware Franchise Tax: Ensure timely payment of the franchise tax to avoid penalties and maintain good standing.
3. Filing an Annual Report: Required for Delaware Corporations, this report must include details of all directors, an officer, and their addresses, along with current figures for gross assets and issued shares.
Consequences of Non-Compliance
Failing to meet these requirements can lead to severe consequences:
•The Delaware Division of Corporations may invalidate or cancel your company if you fail to pay your Delaware Franchise Tax or maintain an active registered agent.
•A missed Franchise Tax payment will be recorded in the Delaware Division of Corporations’ records, which can deter potential investors.
•For LLCs/LPs, if Franchise Tax is unpaid for three consecutive years (or two years for corporations), the company will be marked as Cancelled/Voided by the State of Delaware.
Stay Compliant with DelawareAgency
To ensure your company remains in good standing, let DelawareAgency assist you with filing your franchise tax and annual report. Our expert team can help you navigate the process smoothly and keep your business compliant with state requirements.
For more information or pre-sales questions, call us at +1 302 310 21 76 or text us on WhatsApp!
