What is Delaware Franchise Tax?
Franchise Tax is a one-time state fee imposed by Delaware for the privilege of owning and maintaining a Delaware company. It doesn’t depend on income or business activity; it is simply required to keep your company in good standing. Your registered agent can assist with this payment.
When is it due?
The due dates for Delaware Franchise Tax vary by company type:
- Corporation Franchise Tax: Due by March 1 each year. A $200 late penalty plus 1.5% monthly interest is imposed if not paid on time.
- Delaware LLC and LP Franchise Tax: Due by June 1 each year. A $200 late penalty plus 1.5% monthly interest is imposed if not paid on time.
Corporations and LLCs are taxed in arrears, meaning the tax due on each date is for the previous calendar year. The franchise tax is due regardless of business activity or profit.
For information on how to calculate your Franchise Tax, check out this article.
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