When are Delaware LLC franchise taxes due?
The annual franchise tax of the Delaware LLC is due on June 1 every year. The annual report filing fee payable to the Secretary of State for Delaware must be paid on or before that date. The Delaware Limited Liability Company (LLC) requires an annual franchise tax payment.
What is the annual fee for a LLC?
LLC Fees. Annual Report (& Supplemental Fee) $ 138.75. Annual Report (Received after May 1) $ 538.75. Amended Annual Report. $ 50.00. Certificate of Status. $ 5.00.
What is the corporate tax rate for Delaware?
Delaware has a flat corporate income tax rate of 8.700% of gross income. The federal corporate income tax, by contrast, has a marginal bracketed corporate income tax.Delaware's maximum marginal corporate income tax rate is the 10th highest in the United States, ranking directly below California's 8.840%.
Is Delaware a franchise tax?
In Delaware, the franchise tax is a “privilege fee,” which allows an entity to maintain its good-standing status in Delaware. This is a separate and distinct tax and has no bearing on an entity’s income or operations. Payment of the franchise tax on time and in the correct amount is important to maintain good-standing status in Delaware.
What is Delaware LLC franchise tax?
Delaware LLC franchise tax is a state fee for owning a Delaware company. The company's income or activity has no impact on the franchise tax; it is required to stay in good standing. However, a “ franchise tax ” doesn't necessarily mean that the company is part of a franchised business.
When do Delaware franchise taxes start?
Corporations owe franchise tax by March 1 of each year. If the tax is not paid by this date, Delaware imposes a $200 penalty, as well as a 1.5 percent interest fee each month.
How is franchise tax calculated?
A corporation's franchise tax is calculated based on the type of corporation and the number of authorized shares it has.
What is assumed par value capital?
The Assumed Par Value Capital method uses a company's total gross assets, based on Form 1120, Schedule L, and the total issued shares.
Is a corporation taxed in arrears?
Corporations, LLCs, and LPs are taxed in arrears. This means that the tax due is based on the previous calendar year. Your annual report should also be submitted with your payment.
What is Delaware Franchise Tax?
Delaware franchise tax is a tax charged by the state of Delaware for the right to own a Delaware company. The tax does not affect income or company activity. The tax is required to maintain the company's good standing in Delaware.
How much is the late fee for franchise tax in Delaware?
If you pay your Delaware franchise tax late, you'll be charged a late fee. The late fee is $125.00 and a 1.5 percent monthly interest afterward.
Why do you need to use franchise tax in Delaware?
The Delaware franchise tax is beneficial to corporations because it is a simple process to submit and calculate payment. The Delaware franchise tax is also beneficial to businesses as it is a small fee in comparison to other states.
What information is required to file a franchise tax in Delaware?
When filing a franchise tax in Delaware, all the must be submitted is the physical address of the business and the name of the registered agent. This can be a business owner or someone else. By not requiring more information, businesses that file their franchise tax in Delaware can maintain privacy.
What happens if you don't file Delaware franchise tax?
If you don't file your Delaware franchise tax on time, you will be charged a late fee.
What is Delaware's court of chancery?
Delaware has what is called a Court of Chancery. This allows the state to adjudicate corporate litigation. The corporate laws and cases decided in Delaware are often used by the Supreme Court to influence decisions.
How much does it cost to register a foreign business in Delaware?
Foreign File. Business that are formed out of state but are registered to do business in Delaware must pay a $125 registration fee. Foreign corporations, those that are formed outside of Delaware, cannot file online. To file as a foreign corporation, mail in the necessary documents.
