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6 Quick Tips To Get Last Minute Delaware Filings Done

There could be countless reasons that you're looking at last minute Delaware corporation filings. Problem is, the deadline won't budge. You have to act fast to avoid penalties. Remember, Delaware has no grace period. If your annual report isn't filed and taxes aren't paid before 11:59pm ET on Saturday, March 1st, you are delinquent. You'll be hit with a penalty of $125 per entity, plus interest at 18% per year until the taxes are filed.

Here are some franchise tax tips that can help you make decisions faster – and shave time off your filings workflow. Plus, you can contact CT's extended support during the Delaware filing season:

Calculating franchise tax

  • If your franchise tax is $350 or less, there is no benefit to recalculating your taxes using the Assumed Par Value Method. Therefore, you do not need to report your issued shares or total gross assets.
  • Conversely, if your tax exceeds $350, you would be wise to attempt to file using both methods to see which is lower.
  • If your entity has "no-par stock," you cannot use the Assumed Par Value Method (as there is no par value to assume in the equation).
  • If using the Assumed Par Value Method to attempt to reduce the franchise tax, you must provide the total issued shares and total gross assets. This information is typically obtained from your accountant or bookkeeper.
  • But - a word to the wise. If you are using the Assumed Par Value Method to reduce your tax liability, be prepared for an audit if you reduce your tax owed by $5,000+ from the prior year, or you reduce your gross assets by $10,000,000+ from the prior filing.

CT's Extended Delaware Support Services:

  • Try to file before February 28th to avoid the rush. Even one day can make a difference. But if you can't, CT is open until midnight on Saturday, March 1st for last minute filers. Our extended Delaware service is available from 8:30am – 8:00pm all week and from 8:30am to midnight on March 1st.

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