March 1: Important Deadline for Delaware Corporations Harvard Business Services

The registered agent will charge a small fee to complete the filing of your Delaware franchise tax. When filing a franchise tax in Delaware, all the must be submitted is the physical address of the business and the name of the registered agent. When you file your Delaware franchise tax, an annual report must also be filed. the basic accounting principles you need to know accounting concepts Don’t forget to include the $50 annual report fee. Along with your business’s annual Delaware franchise tax, your business is required to submit a Delaware annual report. Both the Delaware annual report and the Delaware franchise tax are due by March 1 each year.

Delaware is considered a tax haven or tax shelter. Delaware also has no personal property tax or value-added taxes. For questions, contact the Harvard Business Services, Inc.

How to Calculate Your Delaware Franchise Tax Fee

Business that are formed out of state but are registered to do business in Delaware must pay a $125 registration fee. To use this method, you must supply the company’s total gross assets and the total number of issued shares. This is the first method that is typically used to calculate tax. Payment can be submitted with an electronic check or credit card. If you need to take care of this mandatory obligation, then Harvard Business Services, Inc. can help you get this done. The fastest and easiest way to proceed is by paying the Franchise Tax online on our website.

How to File

Delaware allows you to pay the lower of the two methods. This means that if you receive a high bill that was calculated under the first method, you can request a recalculation using the second method. With this type of business, your business income step 1 generate your idea » will be distributed to you as the sole proprietor. You will pay tax to the state on that income on your individual state tax return. The tax rate will depend on your overall taxable income that year.

March 1: Important Deadline for Delaware Corporations

A report of the calculation can be emailed to you.

1. Your Delaware franchise tax is due on June 1 for an LLC.
2. Delaware also has no personal property tax or value-added taxes.
3. The Delaware franchise tax for foreign corporations is due by June 30 every year.
4. Our office processes thousands of annual Franchise Tax reports each year.

To reduce the taxes paid by a startup, use the Assumed Par Value method. This method calculates the taxes by total assets. Delaware franchise tax is a tax charged by the state of Delaware for the right to own a Delaware company. The tax does not affect income or company activity.

Often, the tax is then calculated to the minimum payment of $350, with a $50 annual report fee. If you pay your Delaware franchise tax late, you’ll be charged a late fee. The late fee is $125.00 and a 1.5 construction in progress accounting percent monthly interest afterward. If your Delaware franchise tax is submitted late, a $125 late fee and interest fee of 1.5 percent will be charged. When paying the annual report fee, corporations are sorted into two categories. The goal of the Delaware franchise tax is to make owning a business in Delaware simple.