DE Annual Report & Franchise Tax-The Buzz! Pt 3

Posted by Gennine
February 13, 2019

Part three of our Delaware Annual Report & Franchise Tax Series will answer questions about the deadline for filing. If this happens to be the first blog you’re seeing in the series, click here to start from the beginning.

The Delaware annual report for all domestic corporations is due on or before March 1.

What happens if I miss the deadline for filing my corporation’s Delaware annual report and paying the franchise tax?

 A penalty fee of $200 will be added if the annual report is not filed by the due date. In addition, 1.5% interest is assessed and added to the total amount due. The 1.5% interest is calculated based only on the total franchise tax due and does not include the annual report fee and penalty. Interest is continually accrued on the 6th of each month until the franchise tax is paid or the entity goes into an inactive status.

What if I have not filed Delaware annual reports for two consecutive years?

The State will declare the company void.  The company will not be in good standing and will need to pay all applicable fees.  A reinstatement will need to be filed in order to bring it back into good standing.  If Incserv is the registered agent, a resignation will most likely be filed prior to March 1, which will place the company into a forfeited status.  Again, all applicable fees and the pertinent filing will need to be completed in order to reinstate to good standing.

Annual Report iStock 812642716What do I do if I made a mistake on my Delaware annual report filing?

An amendment may be filed, but it must be filed before a subsequent report is filed. For example if you made a mistake on the 2017 report, the 2017 report must be amended before the 2018 report is filed. Otherwise the 2017 record will stand as is.  A $50 fee will need to be paid for any amended annual report filed after July 31, 2019

If you have any questions about or need assistance with filing a Delaware annual report or paying Delaware franchise tax, feel free to reach out to us. We’re here to help!

Rose Redman, Quality Assurance and Employee Development Manager