Frequently asked questions about the annual Delaware Corporation reports and tax payments for the franchise

As reported at the Secretary of State of Delaware, more than 900,000 sub & # 39 objects of management have their legal home in Delaware, including more than 50% of all US companies that are traded publicly, and 63% Fortune 500. Companies choose Delaware because the state provides a complete package of services for incorporation, including modern and flexible corporate laws, the distinguished Chancery court, convenient for business and state government employees, focused on customer service department Delaverskaga corporations.

In December, the registered agent for Delaware companies begin sending messages about deadlines for filing annual reports for Delaware corporations and tax payments for the franchise. This message is to provide an overview of what is due, if, for the maintenance of good status and the existence of your corporate Delaware organizations. The information provided is limited only by the business and non-profit corporations, Delaware and does not include information on foreign corporations Delaware and other types of sub & # 39 facilities management, such as a limited liability company or partnership company, who are required to submit before June 1 or before.

Q: What it is due and when?

A: Domestic Delaware corporation must submit a fully completed annual report, to pay a fee for filing the annual report and tax deductible to it before 1 March. The tax is paid by the franchise made over the previous calendar year. Liberated corporation should not have to pay tax on the franchise, but it should provide a complete report and submit an annual fee for filing an annual report. The report must be submitted online and must be received by the Department of Corporations for the period until 1 March.

Question: How do you calculate the amount of tax deductible Delaware?

A: There are two methods for calculating the tax deductible Delaware corporation; Method of authorized shares and the nominal par value method. Corporation pays the smaller of the two sums.

Q: How can I calculate the tax on the franchise, using the authorized access method?

A: If the corporation has 5,000 shares or less, it pays the minimum tax of $ 75. For corporations that have between 10,000 and 10,000 shares, the tax is $ 150. For corporations with more than 10,000 shares of the tax is $ 150 plus $ 75 for each additional 10 000 shares or part thereof. Maximum annual tax is 180 thousand dollars. Go to http://www.state.de.us/corp/frtaxcalc.shtml for more information on calculating the tax.

Q: How can I calculate the tax on the franchise, using the method of the proposed par value?

A: For corporations using the proposed method of the nominal value, the minimum tax is $ 350. To use this method, the corporation must report the total number of issued shares (including treasury shares) and the total gross activity (as reported in the form of a 1120 US schedule of L, for the company's financial year, which ends in reporting calendar year. Using this method is 350 dollars . US $ 1000000 or part of the capital provided for the rated maximum annual tax amounts to 180 thousand dollars in tax departments of corporations tax calculator at http:. //www.corp.delaware .gov /taxcalc.shtml or go to the website listed above Delaware for more information.

Question: Are there any additional fees to be paid at the time of filing the annual report of my corporation?

A: State Secretary of the State of Delaware will add an additional annual fee of $ 75.

Q: How can I calculate the tax on the franchise for nevyzvalenyh on shares of corporations?

A: All nevyzvalenyya no-stock corporations pay tax deductible in the amount of US $ 75. No alternative method of taxation.

Question: I understand that some corporations have to pay taxes on a quarterly basis for the franchise. How does it work?

A: Taxpayers who borrowed 5,000 dollars and more tentative pay taxes in quarterly installments, 40% to pay on June 1, 20% by September 1, 20% by 1 December, and the rest – on 1 March.

Q: Do I need to file an annual report with the annual payment of tax?

A: No, the annual Delaware report should only be submitted once a year, before 1 March.

Question: If a large amount of tax can be paid to carry out the Secretary of State of Delaware on the phone?

A: The Corporation may pay taxes on the franchise directly through DE SOS ACH- This method should be used for all transactions in excess of $ 5,000 . If you prefer to make payment by means of transfer, consult with a registered agent, as most professional registered agent accepts funds via bank account, pay the Secretary of State of Delaware and continued evidence of such payments on behalf of your corporation.

Q: What happens if I missed the deadline on March 1?

A: Reports that have been filed before March 1, will lead to the fact that Delaware corporations department to calculate a fine of $ 125 in addition to the tax and the annual fee, plus interest at the rate of 1.5% per month, which shall apply to any unpaid tax balance.

It is also important to note that the Delaware will not issue certificates of good status for corporations that failed to comply with filing requirements of annual reports . After two years of disobedience and non-payment of corporation certificate of registration will be canceled.

Q: What information is required in the annual report?

A: Annual report your corporation "Delaware" pre-filled with certain information, including the exact legal name of the sub & # 39 facility, the total number of authorized shares, par value and class of shares, and the division of tax deductible and taxes to be. In addition, the annual report must take into account the main address of the company name, address and telephone number all Directors, the name, address and phone number one officer authorized subscriber.

Q: Who can serve as the authorized subscriber of the electronic annual report?

A: Any officer or director of a corporation may sign the annual report. If the corporation did not choose either employees or directors at the time of the annual report, it must be signed by the organizers.

Q: How do I submit my annual report to the corporation and to make payment?

A: Now Delaware requires that all annual tax returns for the franchise filed in electronic form and to accept payment in US dollars and are processed in US banks.

You have the following options of reporting and payment of taxes and fees:

  1. Apply in electronic form on the website of the State of Delaware, listed above. Your payment options at the state website – ACH Debit, Visa, MasterCard, Discover or American Express. Live support is available online from Monday to Friday, from 8:30 to 16:00 by pressing " Contact us "Link. If you require special accommodations, you can contact the Department of Taxes on corporate franchise at (302) 739-3073.
  2. Free electronic use of a registered agent in the Internet system, for the delivery of the annual report in Delaware. Agents that offer such systems usually keep the information necessary to supplement the reports, so you do not have to re-enter it in subsequent years. (If you are applying directly to the state, you will have to enter all the information every year.) Payment options on the registered agent site is different, so check in advance to make sure that you can pay from the options.

Q: What happens if a corporation on & # 39; connected to either stop before the end of the calendar tax year?

A: Delaware requires that the annual report (s) to be relevant prior to all feed on dissolution and merger. At the time of cancellation or merger of all taxes on the benefits to be paid to the date of filing the Certificate of dissolution or merger of the Delaware Secretary of State.

NOT awareness of this requirement can be frustrating when the filing for this reason delayed. We recommend to identify the tax, which is owned in these cases long before the date of filing of the application for dissolution or merger. Professional registered agent of the company should be able to help with getting the amount of taxes paid in any date.