Delaware Franchise Tax Filing
Delaware's Division of Corporations requires that all business entities file an annual report.
Deadline for this form has passed. Contact us if you've missed the deadline.
What is DFT Filling?
All business entities in Delaware must comply with the Division of Corporations by submitting an Annual Report and fulfilling their Franchise Tax obligation.
Domestic Corporations must make mandatory payments of a minimum of $400 in franchise tax and $50 in filing fee, based on either the Authorized Shares Method or the Assumed Par Value Capital Method.
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Mandatory for
All corporations and LLCs in Delaware, regardless of business activities or location, are required to file and pay franchise taxes.
Penalties
Failure to file taxes on time in Delaware results in a one-time penalty of $200, along with a monthly interest of 1.5% on the tax amount.
Due date
The annual deadline for Delaware Franchise Tax Filing is March 1st.
FAQs
If you have a Delaware C-Corp which was in existence during any calendar tax year (1st January to 31st December), then yes you must file the Annual Report and pay the Delaware Franchise Tax. This is going to cost you a minimum of $400 tax + $50 government filing fee, and possibly much more if you've raised in the millions.
The Delaware Franchise Tax is an annual tax imposed on businesses incorporated in Delaware or have a presence there. It is not a tax on income but on the privilege of conducting business in Delaware.
C corporations conducting business in Delaware must pay an annual fee known as the Delaware state franchise tax, a privilege fee for operating within the state's jurisdiction.
Not paying the Delaware Franchise Tax and failing to file the Annual Report for two consecutive years will lead to the State of Delaware's automatic administrative dissolution of the corporation.
Still have questions?
Reach out to our support team if you have any additional questions regarding filing.
