Missed the Delaware Corporation Annual Report and Franchise Tax Deadline?

Trust us when we say that if you missed the March 1^st deadline for Delaware domestic corporation annual reports and franchise tax payments, you are certainly not alone.

As they say, “to err is human”.

Dwelling on those oversights will only incur additional late fees, so let’s cut straight to how you can get your corporation back in good standing.

Delaware Annual Report Late Fees and Penalties

When domestic Delaware corporations (including exempt corporations) fail to file an annual report and/or pay franchise taxes by the March 1^st deadline, the Delaware Division of Corporations levies a $200 penalty on top of the original annual report fee and taxes due, plus 1.5% interest per month applied to any unpaid tax balance.

Aside from these financial penalties, Delaware will not issue any Good Standing Certificates for a given corporation until they have met the annual report filing requirements. Keep in mind that Delaware requires that annual reports are filed prior to all dissolution and merger filings.

For Delaware corporations that are actively conducting business, getting up to date on annual report filings and past due franchise taxes as soon as possible means avoiding frustration and delays later on when other important time-sensitive filings need to be made in Delaware.

How to File Delaware Annual Reports and Pay Franchise Taxes

You have a few options for getting back to good standing. One option is filing directly with the Delaware Division of Corporations. Alternatively, you can contact your Delaware registered agent for assistance with filing your annual report and paying your franchise taxes due, along any penalties and interest accrued.

You may also want to consider having your registered agent handle compliance filings on your behalf, in Delaware and all of the other states where you conduct business. This can ensure that all of your filing deadlines are met in a timely manner, avoiding any additional fees or risk to your corporation’s good standing.

Additional info about annual tax requirements for other Delaware business entities (e.g. LLCs, LPs and LLPs).

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