Frequently Asked Questions
Franchise Tax and Annual Reports
- What is the deadline for filing DE franchise tax?
- What is an annual report?
- Why are there penalties and/or interest on my account?
- I haven’t started doing business yet. Do I still have to file a report and pay taxes?
What is the deadline for filing DE franchise tax?
The deadline for Delaware domestic corporations to file both the DE annual report and DE franchise tax is on or before March 1st of every year. See here for a list of such important deadlines, and here to discover how to calculate the franchise tax.[back to top]
What is an annual report?
Once you incorporate, domestic and foreign corporations are required to provide annual reports to the state in order to keep your certification current. Annual reports are often mistaken as federal income tax, but it is an entirely separate report to file in addition to your annual income taxes.
If you are incorporated in Delaware, you’ll file the annual report and Delaware franchise tax as well as your income taxes.
Requirements vary by state so check here for a full breakdown of expectations by entity type, state, deadlines and more.[back to top]
Why are there penalties and/or interest on my account?
The Franchise Taxes are due by March 1 for corporations and June 1 of every year for LLCs. If the tax is not paid on or before the due date, the state imposes a $200 late penalty, plus a monthly interest fee of 1.5 percent.[back to top]
I haven’t started doing business yet. Do I still have to file a report and pay taxes?
Yes, all companies formed in the state of Delaware are required to file and pay DE Franchise tax and the annual report. It is required to maintain the company’s good standing in Delaware.[back to top]