Delaware Franchise Tax Deadline
Introduction
The Delaware franchise tax is an annual tax imposed on businesses that are incorporated or registered in the state of Delaware. The tax is based on the authorized capital stock of the business, and it is due on March 1st of each year.
Who is Subject to the Delaware Franchise Tax?
All businesses that are incorporated or registered in the state of Delaware are subject to the franchise tax. This includes corporations, limited liability companies (LLCs), and limited partnerships.
How is the Delaware Franchise Tax Calculated?
The Delaware franchise tax is calculated based on the authorized capital stock of the business. The authorized capital stock is the maximum number of shares of stock that the business is authorized to issue.
The tax rate is $50 for each $1,000 of authorized capital stock. For example, a business with $100,000 of authorized capital stock would owe $500 in franchise tax.
When is the Delaware Franchise Tax Due?
The Delaware franchise tax is due on March 1st of each year. If the tax is not paid by March 1st, the business will be subject to a late payment penalty of 10%.
How to Pay the Delaware Franchise Tax
The Delaware franchise tax can be paid online, by mail, or by phone.
To pay online, visit the Delaware Division of Corporations website at https://icis.corp.delaware.gov/Ecommerce/Login.aspx.
To pay by mail, send a check or money order payable to the Delaware Division of Corporations to:
Delaware Division of Corporations
401 Federal Street, Suite 4
Dover, DE 19901
To pay by phone, call the Delaware Division of Corporations at (302) 739-4052.
Penalties for Late Payment
If the Delaware franchise tax is not paid by March 1st, the business will be subject to a late payment penalty of 10%. The penalty will be added to the amount of tax due.
In addition, the business may be subject to a suspension of its charter or license.
Conclusion
The Delaware franchise tax is an important tax that all businesses that are incorporated or registered in the state of Delaware must be aware of. The tax is due on March 1st of each year, and it is important to pay the tax on time to avoid late payment penalties.
