9 Easy Tips for Filing Your Delaware Franchise Tax

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What to Remember When Filing Your Delaware Franchise Tax

filing corporation franchise tax in delaware

1. Provide a physical street address for your principal place of business. It does not have to be an address in the United States, and it should not be a post office box or the address of your Registered Agent. Even if your corporation operates completely online and does not have actual office space, there is still an address at which your company receives correspondence; provide that address when filing your Delaware Franchise Tax.   

2. You do not need to fill out a new annual report every time your corporation moves or changes its principal place of business address in the same year. However, you should notify your Registered Agent of the new address to ensure your company receives all its important correspondence.

3. List the names and addresses of all your corporation’s directors at the time of the annual report filing. For most companies, there may be just a handful of directors while Exempt/Non-Profit corporations may have numerous individuals on their Board of Directors. Regardless of how many directors your company has, all of them need to be disclosed. Each director’s listed address can be a personal address or your company’s address.

4. You do not have to list more than one of your company’s elected officers when you file your Franchise Tax report. Typically, a company elects a President, Vice President, CEO, CFO and Secretary. Only one of these people can be recorded on the annual report, and it doesn’t matter which one. Just pick one and provide the title along with a physical street address.

5. You do not have to file a new annual report every time a director and/or officer is elected or resigns. These details should be documented in the company’s internal records, and typically the changes are made in accordance with the company’s bylaws

6.  If your corporation has over 10,000 shares of authorized stock, provide your total issued shares and total gross assets as of the end of the year. Corporations with this type of stock structure should provide this additional information in order to try and reduce the amount of Franchise Tax due. The issued shares should be the sum of your shares of stock that have been sold, distributed and otherwise disseminated. If your entity has more than one class of stock, the total number of issued shares for each class will need to be provided. Also, if the entity filed a stock amendment at any time during the year, the total issued shares will need to be specified for each time period. The total gross assets would be the value found on the corporation’s Federal Income Tax Return, page 1, Schedule L.

7.  You do not have to offer any details regarding your corporation’s profits or losses. This figure does not have any bearing on your company’s Franchise Tax Fee.

8.  Make sure your Franchise Tax filing is authorized by the director or officer listed on the annual report. 

9.  Retain a copy of your Franchise Tax annual report for your corporate records.  If you file with Harvard Business Services, Inc., we will maintain a copy in case you need it in the future.

More By Amy Fountain
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