If your for-profit company paid more than $5,000 in franchise taxes when filing the annual report for the prior year, you are required to make a quarterly estimated tax payment for the current tax year going forward. The first quarterly installment at 40% of the estimated tax is due by June 1^st.  The second and third installment at 20% is due by September 1^st and December 1^st, and the remaining balance is due, along with your annual report, by March 1^st.

Failure to pay your franchise taxes on time will result in accumulating interest fees.   In addition, your company will no longer be in good standing with the State of Delaware until all taxes due are paid in full. This might delay possible investments or financial transactions that may require a Good Standing Certificate.

June 1^st is fast approaching – if you have any questions or need assistance paying your quarterly franchise tax, give us a call 800.346.4646 or email us.  We’ll be happy to assist you!

Want more information on how franchise taxes are calculated?  Visit the State of Delaware website at: How to Calculate Franchise Taxes.

Note: Should the total tax payment become less than $5,000, the company will no longer be required to make quarterly tax payments.

Gennine Cooper, Marketing Associate