Every year, Delaware corporations must file reports and pay franchise taxes by March 1 in order to remain in good standing with the Delaware Secretary of State.
The annual report includes basic information, such as the names of the corporation’s directors and officers, as well as the corporation’s authorized and outstanding share information. Delaware corporations must complete the filing online through the Delaware Secretary of State’s website.
Delaware franchise taxes are calculated in two ways: (i) the authorized shares method (automatically calculated by the state) and (ii) the assumed par value capital method.
The Delaware Secretary of State’s website provides the following helpful information and tips, including how to determine the most advantageous method for calculating the franchise taxes owed.
Resources:
- Annual Report and Business Entity Tax Application (click through to file an annual report or pay taxes)
- Article: “How to Calculate Franchise Taxes”
- Franchise Tax Calculator
