Delaware Franchise Tax Calculator

Any company incorporated in the State of Delaware, regardless of ownership, must file every year on March 1st, or receive an automatic $200 penalty. This Delaware Franchise tax calculator is designed to estimate your De Franchise tax.

The Delaware franchise tax is a tax imposed by the Delaware Department of State on Delaware corporations.

It is a tax required for the privilege of incorporation in Delaware and it is payable even if the corporation does not conduct business within the state.

All corporations incorporated in the State of Delaware are required to pay the DE franchise tax. This includes both domestic corporations and those incorporated in Delaware but conducting business elsewhere. Exempt domestic corporations (such as non-profits) do not pay the tax but must file an Annual Report.

The DE franchise taxes and annual reports are due no later than March 1st of each year. For limited partnerships, limited liability companies, and general partnerships formed in Delaware, the annual tax is due on or before June 1st of each year.

For corporations, there are two ways to calculate the Delaware Franchise Tax:

Authorized Shares Method: Tax is calculated based on the number of shares the company is authorized to issue.

  • Fewer than 5,000 shares: $175
  • More than 5,000 shares: Tax increases based on the number of shares

Assumed Par Value Capital Method: Based on the company’s total gross assets and the number of issued shares.

  • Requires knowing the company’s total gross assets and issued shares
  • Calculation can be more complex but often results in lower tax for larger companies

So how much will the Delaware Franchise Tax cost me each year?

The cost varies based on the corporation’s structure and size. The minimum tax is $175.00 for corporations using the Authorized Shares method and $400.00 for those using the Assumed Par Value Capital Method. The maximum tax is generally $200,000.00, but for Large Corporate Filers, it is $250,000.00.

For limited partnerships, limited liability companies, and general partnerships, the annual tax is $300.00.

Corporations owing $5,000.00 or more in taxes must pay estimated taxes in quarterly installments, with specific percentages due on June 1, September 1, December 1, and the remainder on March 1.

The annual report filing fee for domestic corporations is $50.00 plus taxes due upon filing.

Penalties apply for late payments or non-filing, including a $200.00 penalty for not filing a completed Annual Report by March 1st and interest at 1.5% per month on any unpaid tax balance.

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