Delaware franchise tax with annual report

I performed web searches and scraped authoritative Delaware state pages and reputable secondary sources to gather comprehensive, up-to-date information about Delaware franchise tax and associated annual reporting requirements for corporations and alternative entities (LLCs/LPs/LLPs).

I reviewed the Delaware Division of Corporations pages on franchise tax, annual reports, and alternative entity taxes; Delaware Division of Revenue guidance; and recent industry summaries (FileForms, Commenda, etc.).

I extracted details on deadlines, filing methods, calculation methods, tax rates/limits, penalties and interest for late filings, payment methods, estimated tax requirements, distinctions between corporations and alternative entities, dissolution/reinstatement implications, common compliance pitfalls, and practical steps for business owners to stay compliant.

Key findings (concise summary): 1) Deadlines: - Corporations (domestic and foreign corporations incorporated in Delaware): Annual Report and franchise tax due March 1 each year. - Alternative entities (LLCs, LPs, LLPs): Annual tax (flat fee) due June 1 each year; no annual report requirement for these entities. 2) Amounts and calculation (corporations): - Two calculation methods: Authorized Shares Method and Assumed Par Value Capital Method (aka ‘Par Value Capital’ or ‘Assumed Par Value’ method).

Delaware offers both; filers may choose the lower tax. - Minimums: Authorized Shares method minimum $175; Assumed Par Value method minimum $400. Maximum tax for typical filers $200,000; Large Corporate Filer cap $250,000. - Corporations with tax liability >= $5,000 must pay estimated taxes in quarterly installments (40% June 1, 20% Sept 1, 20% Dec 1, remainder March 1).

I performed web searches and scraped authoritative Delaware state pages and reputable secondary sources to gather comprehensive, up-to-date information about Delaware franchise tax and associated annual reporting requirements for corporations and alternative entities (LLCs/LPs/LLPs).

I reviewed the Delaware Division of Corporations pages on franchise tax, annual reports, and alternative entity taxes; Delaware Division of Revenue guidance; and recent industry summaries (FileForms, Commenda, etc.).

I extracted details on deadlines, filing methods, calculation methods, tax rates/limits, penalties and interest for late filings, payment methods, estimated tax requirements, distinctions between corporations and alternative entities, dissolution/reinstatement implications, common compliance pitfalls, and practical steps for business owners to stay compliant.

Key findings (concise summary): 1) Deadlines: - Corporations (domestic and foreign corporations incorporated in Delaware): Annual Report and franchise tax due March 1 each year. - Alternative entities (LLCs, LPs, LLPs): Annual tax (flat fee) due June 1 each year; no annual report requirement for these entities. 2) Amounts and calculation (corporations):

- Minimums: Authorized Shares method minimum $175; Assumed Par Value method minimum $400. Maximum tax for typical filers $200,000; Large Corporate Filer cap $250,000. - Corporations with tax liability >= $5,000 must pay estimated taxes in quarterly installments (40% June 1, 20% Sept 1, 20% Dec 1, remainder March 1).

• Two calculation methods: Authorized Shares Method and Assumed Par Value Capital Method (aka ‘Par Value Capital’ or ‘Assumed Par Value’ method). Delaware offers both; filers may choose the lower tax.

Amounts for LLCs/LPs/LLPs

- Flat annual tax $

Due June

No annual report required. Penalty for failure $200 plus 1.5% monthly interest on unpaid tax/penalty. 4) Penalties & interest

- Late filing penalty $200 plus 1.5% interest per month applied to tax and penalty for both corporations and alternative entities. Loss of good standing and risk of void/dissolution for continued noncompliance.

Filing and payment

- All corporate annual reports and franchise tax payments must be filed online via the Delaware Division of Corporations portal. Payment methods include credit card and ACH. Filers must include registered agent details and share/officer information as required.

Practical guidance for business owners / LLC founders

- Corporations: calculate both tax methods annually and choose the lower; file early; monitor authorized/issued shares after fundraising; pay estimated taxes if required; keep registered agent/contact info current. - LLCs: meet June 1 payment; dissolve properly to stop tax obligations; verify registered agent info. - For missed filings: reinstate by paying back taxes, penalties, and interest; contact Division of Corporations for reinstatement process and forms.