Have you formed a corporation in Delaware or operating your business as a Delaware corporation? You may not realize that your Delaware corporation Annual Report is due soon on March 1. Additionally, you will need to pay your annual franchise tax fee. Here’s what you need to know to stay compliant with the state of Delaware.
What’s Due on March 1
If you formed a corporation in Delaware, there are several key things you need to take care of by March 1, 2015.
First, your Annual Report is due. This is a simple document that ensures that the state of Delaware has the most up-to-date information on your corporation, its officers, et cetera. There is a $75 Annual Report filing fee.
You also need to pay your franchise tax fees by March 1. For non-exempt corporations, that fee is $50 for the year. For exempt companies, it’s $25. Your company is exempt if it is a 501(c), a civic organization, or a charitable organization. Here you can learn more to see if you’re exempt.
When you incorporate in Delaware and decide to issue shares for your corporation, your franchise tax fee will be between $175 and $350.
Penalties for Filing a Late Annual Report in Delaware
If you don’t submit your Delaware corporation Annual Report and pay the related fees by March 1, you will need to pay a $125 penalty in addition to the tax and annual report fee, plus interest at 1.5% per month applied to any unpaid tax balance for your Delaware Corporation.
Also: the state of Delaware will not issue Good Standing Certificates for corporations that have not met the annual report filing requirements. If, after two years you still haven’t filed your Annual Report or paid the franchise tax fee, your Certificate of Incorporation will be revoked. It’s a serious issue, and one that’s easy enough to avoid by simply making that March 1 deadline.
Let CorpNet Can Help with Your Delaware Annual Report
March 1 is rapidly approaching! We can help you file your Delaware Corporation’s Annual Report: