4 Common Franchise Tax Filing Mistakes
By Rick Bell
Tuesday, February 11, 2014
Do you want to deal directly with the state of Delaware for your company's Franchise Tax needs?
Keep these common mistakes in mind:
- Waiting until the last minute to pay your Franchise Tax. If you're one of the one million Delaware companies that believe they can log on to the state’s website on February 29 at 8 PM and pay via PayPal, think again. Our advice: Pay your Delaware Franchise Tax early and use Visa or MasterCard.
- Not having a credit card. The state accepts MasterCard, Visa and American Express. If you don’t have a credit card, don’t bother calling them. Just mail your check and tax form.
- Failure to provide director information: This is neccessary and required information.
- Failure to have your company’s state file number. The state does not have the name and address information for your company, nor does it have a contact person for your company. In Delaware, the Registerd Agent maintains the contact person’s information. Therefore, the state cannot verify your payment will be credited to the correct company if you happen to select the wrong company--one with a very similar name to yours--when you pay the Franchise Tax. (This happens more than you might think.) A mistake like this will take time to sort out and during that time, you may not be able to get a Certificate of Good Standing if you should need one.
For assistance with filing your Delaware annual Franchise Tax, please feel free to call, email or live chat with us. We're happy to help.
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.