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Franchise Tax

Delaware corporate annual report and franchise tax

Delaware corporations do not have a simple one-form annual report. They have a combined annual report and franchise-tax workflow, and the state treats corporations differently from LLCs and partnerships.

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What applies to corporations

Delaware domestic corporations file an annual report and pay franchise tax by March 1 each year.

Also check

This guide only covers the state record. Use Delaware LLC, LP, and GP annual tax next to check the county, city, and municipal layer that can still create risk.

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  • Exempt domestic corporations file the annual report with a $25 fee.
  • Non-exempt domestic corporations file the annual report with a $50 fee and also pay franchise tax.
  • The state lists a minimum tax of $175 under the Authorized Shares method and $400 under the Assumed Par Value method.
  • Missing the March 1 deadline adds a $200 penalty plus 1.5 percent interest per month on the unpaid balance.

Foreign Delaware corporations

  • Foreign corporations authorized in Delaware file an annual report by June 30.
  • Delaware lists a $125 annual report fee and a $125 late penalty for foreign corporations.

What this does not cover

LLCs, LPs, and GPs generally do not file this corporate annual report. Delaware handles those entities through a separate annual tax lane.

What you may need to file

Filing variants broken out in plain terms

Some guides cover more than one obligation or entity class. These cards separate the filing variants so it is easier to see what applies.

Annual Report

Delaware corporate annual report

  • Entities: Delaware corporations
  • Frequency: annual
  • Due rule: Due March 1 each year.
  • Fee: $50.00 filing fee for non-exempt domestic corporations.
  • Method: Required to be filed online with the Delaware Division of Corporations.

The annual report and franchise tax run on the same March 1 domestic corporation deadline.

Key requirements

  • Deadline: All active domestic corporation annual reports for the prior year are due on or before March 1.
Franchise Tax

Delaware corporate franchise tax

  • Entities: Delaware corporations
  • Frequency: annual
  • Due rule: Due March 1 each year.
  • Fee: Minimum tax is $175.00 under the Authorized Shares Method and $400.00 minimum under the Assumed Par Value Capital Method.
  • Method: Pay online with the Delaware Division of Corporations.

The tax can be calculated under more than one method, which is why Delaware is a strong referral state.

Key requirements

  • Calculation methods: Compare the Authorized Shares Method and the Assumed Par Value Capital Method.
  • Penalty signal: Failure to file and pay results in a $200 penalty plus 1.5% interest per month on tax and penalty.