The registered agent will charge a small fee to complete the filing of your Delaware franchise tax. When filing a franchise tax in Delaware, all the must be submitted is the physical address of the business and the name of the registered agent. When you file your Delaware franchise tax, an annual report must also be filed. Don’t forget to include the $50 annual report fee. Along with your business’s annual Delaware franchise tax, your business is required to submit a Delaware annual report. Both the Delaware annual report and the Delaware franchise tax are due by March 1 each year.
Delaware is considered a tax haven or tax shelter. Delaware also has no personal property tax or value-added taxes. For questions, contact the Harvard Business Services, Inc.
Delaware Annual Report
Delaware allows you to pay the lower of the two methods. This means that if you receive a high bill that was calculated under the first method, you can request a recalculation using the second method. With this type of business, your business income will be distributed to you as the sole proprietor. You will pay tax to the state on that income on your individual state tax return. The tax rate will depend on your overall taxable income that year.
To reduce the taxes paid by a startup, use the Assumed Par Value method. This method calculates the taxes by total assets. Delaware franchise tax is a tax charged by master budget the state of Delaware for the right to own a Delaware company. The tax does not affect income or company activity.
March 1: Important Deadline for Delaware Corporations
Every company incorporated in Delaware is required to file and pay the annual Franchise Tax report to maintain a good standing existence. When you submit your Delaware franchise tax payment, you’ll also need to submit an annual report. operating revenue Non-stock or non-profit companies are considered exempt from tax in Delaware. These types of companies must file an annual report fee.
How to File
- Both the Delaware annual report and the Delaware franchise tax are due by March 1 each year.
- If your Delaware franchise tax is submitted late, a $125 late fee and interest fee of 1.5 percent will be charged.
- This is the first method that is typically used to calculate tax.
- If you own a business that operates in multiple states, you will greatly benefit from the knowledge of a tax professional.
- When you submit your Delaware franchise tax payment, you’ll also need to submit an annual report.
- The tax is required to maintain the company’s good standing in Delaware.
You will also be charged a 1.5 percent monthly interest what is a prepayment on the amount due. Filing your Delaware franchise tax is a simple, online process. Our office processes thousands of annual Franchise Tax reports each year. In order to make sure all the filings are processed on time, we must enforce a cut-off time for accepting any new orders.
How Do I Pay My Delaware Franchise Tax?
Business that are formed out of state but are registered to do business in Delaware must pay a $125 registration fee. To use this method, you must supply the company’s total gross assets and the total number of issued shares. This is the first method that is typically used to calculate tax. Payment can be submitted with an electronic check or credit card. If you need to take care of this mandatory obligation, then Harvard Business Services, Inc. can help you get this done. The fastest and easiest way to proceed is by paying the Franchise Tax online on our website.