As a Delaware corporation owner, remember to file annual report and pay corporate franchise tax in Delaware annually.
If you own a Delaware corporation, you must comply with some state corporate law requirements annually.
Delaware Annual Report
First, prepare and file a Delaware annual report. Second, pay the corporate franchise tax in Delaware. Third, pay the report filing fee. And fourth, pay an annual fee to a registered agent of your corporation in Delaware.
As a business owner, you should properly and timely fulfill these annual corporate compliance requirements in Delaware. Otherwise, your corporation may lose its good standing, incur penalties, and become void or dissolved.
Report Filing Deadline
The deadline to file Delaware annual reports is March 1st of every year for the previous year. Missing this deadline results in a penalty of $200 plus 1.5% interest per month on tax and penalty.
If you need help to file your Delaware annual report in time, just leave your comment below.
Delaware requires to list directors. Specifically, a list of all names and addresses of directors must be filed on the corporation’s annual report and requires a signature of one officer or director. If you have no officer appointed yet, you may list no officers.
Delaware Corporate Franchise Tax
The main aspect of the Delaware annual report is the corporate franchise tax. This tax depends on the number of shares and their par value. There are two methods to calculate this tax: authorized shares method and assumed par value capital method. You need to apply the method that results in a lesser amount of tax.
For example, if you have up to 5,000 shares, the tax would be $175. That’s the minimum. In contrast, if you have millions of shares, the minimum tax would be $400.
DE Annual Report Data
Delaware annual reports must also contain such data as the stock details, principal place of business, directors, and officers. The principal place of business is a physical location. It may not necessarily be in the US. It may be in any country, like Ukraine.
For more information on Delaware corporate compliance, subscribe to our newsletter.
