Last week when we discussed Annual Report Services (click here to read that blog), we mentioned most jurisdictions have annual filing and/or tax requirements. Delaware is one of those jurisdictions that requires annual report filings and franchise tax payments. Depending on the entity type, both may be required or just one…but, we’ll get into those details later. Since Delaware also happens to be the jurisdiction we seem to get the most questions about, we decided to tackle the subject in a series of blogs. Today we’ll start by answering just a few basic questions…
What is a Delaware Annual Report? This is a document filed annually with the State of Delaware Division of Corporations detailing pertinent company details. Information such as the Principal Place of Business, Officer and Director details, and stock information are included on the annual report. The stock information provided helps to determine the annual franchise tax due. Not all entities are required to file an annual report.
What is franchise tax? Franchise taxes are an annual fee paid to the State of Delaware Division of Corporations for your entity. For corporations, the franchise tax fee is based on authorized shares. For alternative entities, such as LLCs, the fee is a flat rate. Most entities are required to pay a franchise tax.
What entity types file an annual report and/or pay franchise taxes? When are they due?
|Entity Type||Annual Report||Franchise Tax||Due Date|
|Domestic Corporations||Yes||Yes||March 1st|
|Exempt Domestic Corporations||Yes||No||March 1st|
|Domestic Limited Liability Companies||No||Yes||June 1st|
|Domestic Limited Partnerships||No||Yes||June 1st|
|Foreign Corporations||Yes||Yes||June 30th|
|Foreign Limited Liability Companies||No||Yes||June 1st|
|Foreign Limited Partnerships||No||Yes||June 1st|
|Delaware Statutory Trusts||No||No||N/A|