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The 411 On Your Delaware Franchise Tax Fees

how much is delaware franchise tax

By Amy Fountain Tuesday, November 19, 2013

It is that time of the year again, when the annual franchise tax fees for all Delaware Corporations are due. The State of Delaware imposes an annual franchise tax fee on every entity formed in this State. If you have a Corporation, then the deadline is March 1 of every year. If you have a Limited Liability Company (LLC) or Limited Partnership (LP), then the deadline is June 1, each year.

Your first question may be: How much franchise tax fees do I owe? The amount due will vary depending upon the type of entity that you have and the number of authorized shares in your corporation. Statistically, most Corporations have less than 5000 total authorized shares of stock. In this case, the franchise tax fee is $125 per year (please note: That amount will be $225 as of July 1, 2014). Again, depending on the type of Corporation and the stock structure, the amount of franchise tax fee can differ.

Some of you may be thinking: But my company did not conduct any business; My company did not open a bank account yet; My company is not physically located in Delaware; My company did not make any money; etc. Regardless of these examples, or any other potential reasons, the bottom line is that every Corporation formed in the State of Delaware is required to file and pay an annual franchise tax report each and every year. It is the law.

Then you may be wondering: How can I take care of this fee due? In addition to making the proper payment arrangements, the State of

Delaware also requires that all Corporations file an annual report. Specifically, the annual report must be filed electronically. The annual report asks basic internal details about the company, such as Principal Place of Business, Director and Officer Information, etc. Therefore, you will complete the annual report and pay the franchise tax fees at the same time.

In case you are looking for some assistance in taking care of this mandatory obligation, HBS offers a franchise tax filing service. Our filing fee service ensures that your annual franchise tax report is filed accurately and on time with the State of Delaware. An email receipt for the services will also be sent for your records.

The best part is the sooner you take care of the filing, the more you will save on our filing service. Before December 31, 2013, this filing fee is reduced to only $29 plus the actual amount of franchise tax fees due. The filing fee will incrementally increase each month in January and February, as the March 1 st deadline approaches. Therefore, it is advantageous to take care of the offer now to receive the best deal.

So, how do you get started? It is very easy. Just visit the Delaware franchise tax section of our secure website and enter your company name and file number. Input the required annual report details, make a payment via credit card or PayPal and then you are done. We strive to make our online filing process quick and simple for you.

If you have any further questions, just send us an email at: Or you can telephone us at 1-800-345-2677, extension 6901.

Category: Taxes

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