Delaware Annual Reports and Franchise Taxes are due March 1st for all active Domestic Corporations. Failure to file the report and pay the required franchise taxes will result in a penalty of $200.00 plus 1.5% interest per month on tax and penalty. It is imperative that the Annual Report is completed timely.
What is a Delaware Annual Report?
The Delaware Annual Report for Domestic Corporations is a document containing business information and is filed along with the franchise taxes due each year. The entity does not have to be physically in Delaware or doing business in the state.
What information is required for a Delaware Annual Report?
Annual Reports are filed online. Companies will need the following information:
- The 7-digit Business entity File Number
- Business principal address
- Officer and Director information, including name, title, and address
- The annual franchise tax for a Domestic Corporation is charged based on the authorized shares method (number of shares authorized). The Corporation may choose to recalculate the franchise tax on the assumed par value capital method by providing the total number of shares issued and total gross assets to see if this will generate a lower tax.
Do foreign corporations file a Delaware Annual Report?
Foreign Corporations are required to file an Annual Report on or before June 30th. The fee for filing the Annual Report is $125.00. Foreign corporations are assessed a penalty of $125 if the Annual Report is not filed.
Do LLCs need to file an Annual Report in Delaware?
All Domestic and Foreign Limited Liability Companies, Limited Partnerships, and General Partnerships formed or registered in Delaware are required to pay an annual tax of $300.00. The tax payments are due June 1st. There is no requirement to file an Annual Report.
Do nonprofits need to file an Annual Report?
Yes, however, any corporation granted an exemption by the IRS as a non-profit organization under Section 501(c) is exempt from Delaware Corporate Income Tax. The State of Delaware defines a nonprofit organization as:
- Fraternal beneficiary societies,
- Orders or associations, cemetery corporations, and corporations organized or trusts created for religious, charitable, scientific, or educational purposes or the prevention of cruelty to children or animals, homeowner associations,
- Business leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, as well as clubs organized and operated exclusively for pleasure, recreation, and other non-profit purposes.
The net profit of these organizations cannot benefit any private stockholder or member.
Be aware of scams offering Annual Report filing
The Delaware Secretary of State warns the public of scams targeting Delaware entities:
The Division of Corporations recommends that consumers be alert to deceptive solicitations. Delaware legal entities should view suspiciously any correspondence, via regular mail or e-mail, that does not come directly from the State or the entity’s Delaware registered agent. The Secretary of State’s Office works closely with law enforcement to investigate deceptive solicitations. If a Delaware business entity received such a solicitation or sent payment as a result of receiving this solicitation, please complete a complaint form and immediately contact the Consumer Protection Unit of the Attorney General’s Office at (302) 577-8600 or 1-800-220-5424.
Annual Report filing for small businesses
According to a University of Delaware study in May 2023, Delaware has over 27,000 small businesses. In Fiscal Year 2022, small businesses comprised 56% of the state’s workforce and generated 13.8 billion in wages. Small business owners spend upwards of 36% of the workweek on administrative tasks. A critical task, such as an Annual Report, cannot go unattended. Automated services such as Corp1’s SingleFile’s Annual Report Service provide peace of mind and corporate compliance for small business owners in Delaware. Corp1 will:
- Monitor your account for deadlines
- Handle filing work with expertise
- Proactively communicate information changes
Sign up for filing and monitoring services and spend your time building your business!
Need help with your Delaware Annual Report filing?
All Delaware Annual Reports must be submitted online. Corp1 offers Annual Report filing in Delaware via their online portal. Simple and Easy to use, the Annual Report filing service can be bundled with your registered agent service or purchased individually. SingleFile’s Annual Report Service ensures that your Annual Reports are filed automatically, accurately, and on time.
- Corp1 will confirm the status of your entity in the state
- Pre-process the Annual Report with information on file or proactively reach out for additional information
- Determine fees owed and invoice
- Once information is received, and fees are paid, your Annual Report is submitted to the state
- We then upload the state’s confirmation to your account and notify you that it’s completed
Contact us to learn more, and never worry about your Delaware Annual Report filings again!