All Delaware domestic corporation annual reports and franchise taxes are due Tuesday, March 1, 2016. Exempt/non-profit domestic corporations must also file an annual report, but do not need to pay a tax. Delaware has mandated electronic filing of domestic corporation annual reports.
Taxes
- Authorized Shares method: minimum tax of $175.
- Assumed Par Value Capital Method: minimum tax of $350.
- All corporations using either method will have a maximum tax of $180,000.
- Taxpayers owing $5,000 or more pay
estimated taxes in quarterly installments:
- 40% due June 1, 2016
- 20% due by September 1, 2016
- 20% due by December 1, 2016
- The remainder is due March 1
Penalty Fees
- The penalty for not filing a completed Annual Report on or before March 1st is $125.
- The interest, at 1.5% per month, is applied to any unpaid tax balance.
Missed / Late Filing Implications
- If one payment or filing is missed, the entity will be unable to obtain a certificate of good standing, which could delay deals, transactions, and contracts.
- If two consecutive payments and filings are missed, the entity will lose good standing and the organization's name will no longer be protected from others.
- Further, extra filings (Renewal & Revival) will be required in addition to the penalties, interest, and standard taxes assessed.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.