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Frequently Asked Questions about Annual Tax Payments for Delaware Alternative Business Entities

By: Colleen DeVries, COGENCY GLOBAL INC. on Thu, Mar 29, 2018

Delaware alternative business entities (limited partnerships, limited liability companies and FAQs_iStock_000012053477XSmall-2general partnerships) formed or registered in Delaware are required to pay an annual tax of $300 to the State of Delaware no later than June 1, 2018. This annual tax covers the prior calendar year of existence. There is no requirement for these entity types to file an annual report.

By now, you should have received the paper notice from your registered agent reminding you of this due date and the amount due. Below are some answers to frequently asked questions to help guide you with making your franchise tax payments and ensure you maintain the good standing of your Delaware limited partnership, limited liability company or general partnership. 

 

How Do I Pay My Franchise Tax?

Payment must be made directly to the State of Delaware. You can pay online by credit card (Visa, Master Card, American Express, Discover).  

Or, you can send a check, made out to “Delaware Secretary of State,” to the following address (You must include the detachable payment stub at the bottom of the Tax Notice you received):

Regular Mail:             State of Delaware

Division of Corporations

P.O. Box 5509

Binghamton, NY 13902-5509

 

Overnight:                 J.P. Morgan Chase

                                    33 Lewis Road

                                    Birmingham, NY 13905

                                    Attention: State of Delaware, Division of Corporations - 5509

Payments by wire are not permitted. In addition, if you are paying by check, the state of Delaware will only allow you to include payment for up to 25 entities on a single check.

 

How Do I Find My Company’s Business File Number?

You will need your company’s business file number to pay your taxes online. The file number is on the notice you received from your registered agent, or you can find it on the Delaware Secretary of State’s entity search portal. Simply type the name of your company into the search screen and you will receive a summary of the information on record in Delaware, including the file number.

 

What Happens if I Fail to Pay My Franchise Tax?

Delaware will assess a penalty of $200 for non-payment or late payment, plus interest, which will accrue on the tax and penalty at the rate of 1.5 percent per month.

If franchise tax payment is not made for three consecutive years, the Delaware entity will be deemed void on the Secretary of State’s records. However, the Delaware statutes include provisions to allow you to reinstate the entity by filing a Certificate of Reinstatement and paying all past due taxes, penalties and interest. Your registered agent can assist you with this filing.

 

What if I Have Questions About My Franchise Tax?

You can contact your registered agent or the Delaware State Franchise Tax Unit (302.739.3073) for information regarding the annual franchise tax, or visit the state’s website.

 

This article is provided for informational purposes only and should not be considered, or relied upon, as legal advice.

Topics: Annual Report Compliance