Delaware franchise tax penalty resolution

Delaware franchise tax penalties involve specific deadlines, fees, and resolution steps for corporations and alternative entities like LLCs, LPs, and GPs. Domestic corporations must file their Annual Report and Franchise Tax by March 1st each year.

LLCs, LPs, and GPs have an annual tax due by June 1st. Failure to meet these deadlines results in a $200.00 penalty plus 1.5% interest per month on any unpaid tax balance and penalty.

For corporations, the minimum tax is $175.00 using the Authorized Shares method or $400.00 using the Assumed Par Value Capital method, with a maximum of $200,000.00 (or $250,000.00 for Large Corporate Filers).

Corporations owing $5,000.00 or more must make estimated payments throughout the year. Alternative entities (LLCs, LPs, GPs) pay a flat annual tax of $300.00 and are not required to file an annual report.

The Division of Corporations advises using the tax calculation method that results in the lesser tax. All filings and payments must be made electronically through the Division of Corporations online systems, with payment options including ACH Debit (for transactions over $5,000) and credit card.

To resolve penalties, entities should first check their status online via the Division's search tool, calculate the tax due, and then pay the tax, penalty, and accrued interest electronically. If an entity has been administratively voided or cancelled, reinstatement procedures must be followed, which may involve additional fees.

For disputed penalties or requests for relief, direct contact with the Division of Corporations ( corp@delaware.gov or 302-739-3073) is recommended, as public pages do not provide a standardized penalty waiver form.

Supporting documentation should be prepared for any abatement requests.

Delaware franchise tax penalties involve specific deadlines, fees, and resolution steps for corporations and alternative entities like LLCs, LPs, and GPs. Domestic corporations must file their Annual Report and Franchise Tax by March 1st each year.

LLCs, LPs, and GPs have an annual tax due by June 1st. Failure to meet these deadlines results in a $200.00 penalty plus 1.5% interest per month on any unpaid tax balance and penalty.

For corporations, the minimum tax is $175.00 using the Authorized Shares method or $400.00 using the Assumed Par Value Capital method, with a maximum of $200,000.00 (or $250,000.00 for Large Corporate Filers).

Corporations owing $5,000.00 or more must make estimated payments throughout the year. Alternative entities (LLCs, LPs, GPs) pay a flat annual tax of $300.00 and are not required to file an annual report.

The Division of Corporations advises using the tax calculation method that results in the lesser tax. All filings and payments must be made electronically through the Division of Corporations online systems, with payment options including ACH Debit (for transactions over $5,000) and credit card.

To resolve penalties, entities should first check their status online via the Division's search tool, calculate the tax due, and then pay the tax, penalty, and accrued interest electronically. If an entity has been administratively voided or cancelled, reinstatement procedures must be followed, which may involve additional fees.

For disputed penalties or requests for relief, direct contact with the Division of Corporations ( corp@delaware.gov or 302-739-3073) is recommended, as public pages do not provide a standardized penalty waiver form.

Supporting documentation should be prepared for any abatement requests.