Franchise Tax Filing

Franchise Tax Payments & Annual Reports

To maintain its good standing in the state of Delaware, every Limited Liability Company (LLC) must pay an annual franchise tax of $250.00 to the Secretary of State. Corporations must pay a minimum of $100 per year to cover the annual report and franchise tax. The franchise tax is required regardless of whether a company is active or even conducting business in the state. Failure to pay the franchise tax will result in penalty and interest fees. The Secretary of State will also revoke the company, necessitating a formal reinstatement filing and additional fees to restore its good standing.

CorpAmerica can assist you in keeping your Delaware Company in 'good standing' through our annual franchise tax e-filing service. We'll take care of forwarding your yearly franchise tax payment to the state for you prior to the deadline so that you don't have to worry about late fees or jeopardizing your company's status. Let us worry about the details of your Delaware franchise tax filing while you concentrate on operating your business.

Delaware Franchise Tax Filing Fees

CorpAmerica charges a $40.00 service fee; a small investment that pays off big when it comes to your peace of mind.

For an LLC to join this program, we will just need your LLC information and your payment of $290.00 for the current year ($40.00 service fee + $250.00 franchise tax payment).

For a corporation to join this program, we will just need your corporation information and your minimum payment of $140.00 for the current year ($40.00 service fee + $100.00 minimum franchise tax payment).

Subsequent years of service will be billed to you in advance of the deadline. As long as your payment is received prior to the due date on your invoice, CorpAmerica will satisfy the Delaware franchise taxes on behalf of your company.

Placing a Franchise Tax Order

To request our assistance or place an order, contact a Business Specialist at 877-246-2462 or 302-636-5448. You may also e-mail your order or any question to info@corpamerica.com.

Franchise Tax FAQs

1. Do all Delaware corporations or LLCs have to pay franchise taxes regardless of business activity¿

If a Delaware corporation or LLC is in existence for even 1 day in a year, they are responsible for the Delaware Franchise Taxes.

2. What is involved in Franchise Taxes for an corporation¿

A corporation pays a minimum of $100 for franchise taxes on a yearly basis. This includes a $25 annual report fee, and a minimum of $75 for the taxes. The taxes are due on March 1st every year.

3. When would a Delaware corporation have to pay more than the minimum¿

The amount is based on the amount of stock authorized. It breaks down as follows:

- 5,000 shares or less (minimum tax) $75.00

- 5,001 - 10,000 shares - $150.00

- each additional 10,000 shares or portion thereof add $75.00

- maximum yearly tax is $165,000.00

4. What is involved in Franchise Taxes for an LLC¿

An LLC pays a flat fee of $250 for franchise taxes on a yearly basis. The taxes are due on June1st every year.

5. Why would I pay CorpAmerica to file my franchise taxes.

For a small $40 service fee, we guarantee that your franchise taxes are paid before the deadline. If a tax payment is missed by even 1 day, there is an automatic $100 penalty, plus interest compounded monthly. Let us worry about keeping your franchise taxes paid, so that you can grow your business.

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Did you know?

Delaware is our most popular state of formation for small businesses. Delaware is unique in that it has the "Court of Chancery" to resolve legal disputes timely and inexpensively. We can form your Delaware corporation or LLC for as low as $49 plus state fees.