2016 Due Date for Delaware Franchise Taxes and Domestic Corporation Annual Reports

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.

Written by: CT Corporation

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.

 

 
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