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What is Delaware Franchise Tax?

Updated time: Jul 31, 2018 , 17:04 (UTC+08:00)

The Franchise Tax is imposed by the state of Delaware for the right or privilege to own a Delaware company.

The tax has no bearing on income or company activity - it is simply required by the state of Delaware to maintain the good standing status of the company. The term "Franchise Tax" does not imply that your company is a franchise business.

How to calculate Franchise Tax?

L.L.C Company Corporation Company
Flat annual rate: 300 USD Due date: June 1st of every year* There are 3 different annual rates for 3 circumstances
5,000 shares or less 5,001 - 10,000 shares over 10,000 shares
225 USD 300 USD 375 USD
(This fee already includes fixed 50 USD annual report fee)
Due date: March 1st of every year**
*Late payment will be imposed 200 USD + 1.5% of monthly interest **Late payment will be imposed 125 USD + 1.5% of monthly interest

How to pay Franchise Tax?

As your Registered Agent, Offshore Company Corp will send you tax reminders, by post and email, well in advance of the due date. We offer a tax-filing service fee of US$100.

Please kindly be noted that Corporation Companies must complete an annual report along with Franchise Tax payment. This report must list the company's physical address (not a P.O. box and not Registered address); name and physical address of at least one director; and, if there are any officers, then name, title and physical address of one of the officers.

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