Delaware now requires that each corporation file its annual report electronically and both corporations and LLC’s are required to pay their franchise tax electronically. Delcorp© can make this process easier for you. On our home page, in the upper right corner login as a customer. Your user name is your full company name with all punctuation marks and your pass word is the email address you registered with us. When you log in you have the opportunity to update your contact information. Next fill out the information required to pay your tax and if your company is a corporation, the information required to file the annual report. Delcorp© will do the rest for you for a small convenience fee.
The Filing Fee for the corporation’s annual report is $50 USD in addition to the franchise fee. the minimum franchise tax is $175 and the maximum is $180,000.
The Annual LLC Tax is $300, if is a flat tax which does not relate to income or assets. All LLC’s, irrespective to their size or profitability pay the same $300 tax.
You may use the State of Delaware’s Tax Calculator for estimating your taxes. (Requires Microsoft Excel)
The minimum franchise tax is $75 USD plus a $25 USD filing fee to file the Annual Report. Not-for-profit companies which do not have capital stock pay only the filing fee. The maximum tax is $165,000 plus the report fee.
Corporations pay the lesser of:
For the purpose of this paragraph, it is assumed that no-par capital is calculated by multiplying the number of authorized shares of capital stock without par value by $100.
To the tax attributable to the corporation’s no-par capital, add $200 for each $1,000,000 or fraction thereof in excess of $1,000,000. This is found by multiplying the number of authorized shares of capital stock having par value by dividing the total assets of the corporation shown on its Federal tax return by the total number of issued shares of all classes.
If the result is less than the par value, then the number of authorized shares shall be multiplied by the par value. If one class exceeds the par value and another is less than par value, the results are netted out. If the assumed par value is less than $1,000,000, the tax shall be the amount that bears the same relation to $250 that the amount of the assumed par value bears to $1,000,000.
Federal Tax ID Numbers
An IRS Employer Identification Number (‘E.I. Number’, also known as a Federal Tax ID Number or EIN.), is used to identify a business entity. Generally, businesses need an EIN.
You will need an EIN if you answer “Yes” to any of the following questions.
As a service to our clients, you may request that we prepare an application for an IRS Employer Identification Number for your business. Please select the appropriate link below.