Contact your state or local agencies regarding licensing issues.

Initial Filing Requirements

The following is an overview of Delaware's fees, requirements and compliance issues for corporations and limited liability companies. 

GENERAL INFO

Filing Times

Filing time is the estimate of total turnaround time from the date articles are submitted from SmallBiZ.com to the date the approved articles are received back from the state. NOTE: As part of our filing service, we will be receiving only an approved copy of your articles (also known as "certificate" of incorporation (for INCs) or organization (for LLCs). You may want to order a Certified Copy or Certificate of Good Standing in addition to provide proper proof of formation to a bank or vendor.

 

Expedited	2 to 3 business days (includes FedEx delivery to our office)
Standard Filing	3 to 4 weeks (plus mailing time using standard US Mail)

   Have SmallBiZ.com form your entity now!

Franchise Taxes

The state of Delaware charges $200 for LLCs and $60 min. ($35 min. + $25 filing fee) for corporations. Corporation taxes are figure in one of two methods: Authorized Share Method or Assumed Par Value Capital Method.

Authorized Shares Method

• 3,000 shares or less (minimum tax) = $35.00
• 3,001 - 5,000 shares = $62.50
• 5,001 - 10,000 shares = $112.50
• each additional 10,000 shares or portion thereof add $62.50
• maximum yearly tax = $165,000.00

Examples:
1) Corporation with 10,005 shares authorized pays $175 ($112.50 plus $62.50)
2) Corporation with 100,000 shares authorized pays $675 ($112.50 plus $562.50 [$62.50 x 9])

Assumed Par Value Capital Method
To use this method, you must give figures for all issued shares (including treasury shares) and total gross assets in the spaces provided in your Annual Franchise Tax Report. Total Gross Assets shall be those "total assets" reported on the U.S. Form 1120, Schedule L (Federal Return) relative to the companies fiscal year ending the calendar year of the report. The tax rate under this method is $250.00 per million or portion of a million of the assumed par value capital, which is calculated as described below, if the assumed par value capital is greater than $1,000,000. If the assumed par value capital is less than $1,000,000, the tax is calculated by dividing the assumed par value capital by $1,000,000 then multiplying that result by $250.

The example cited below is for a corporation having 1,000,000 shares of stock with a par value of $1.00 and 250,000 shares of stock with a par value of $5.00 , gross assets of $1,000,000.00 and issued shares totaling 485,000.

1. Divide your total gross assets by your total issued shares carrying to 6 decimal places. The result is your "assumed par." Example: $1,000,000 assets, 485,000 issued shares = $2.061856 assumed par.
2. Multiply the assumed par by the number of authorized shares having a par value of less than the assumed par. Example: $2.061856 assumed par 1,000,000 shares = $2,061,856.
3. Multiply the number of authorized shares with a par value greater than the assumed par by their respective par value. Example: 250,000 shares $5.00 par value = $1,250,000
4. Add the results of #2 and #3 above. The result is your assumed par value capital. Example: $2,061,856 plus 1,250,000 = $3,311, 856 assumed par value capital.
5. Figure your tax by dividing the assumed par value capital, rounded up to the next million if it is over $1,000,000, by 1,000,000 and then multiply by $250.00. Example: 4 x $250.00 = $1,000.00

NOTE: If an amendment changing your stock or par value was filed with the Division of Corporations during the year, issued shares and total gross assets within 30 days of the amendment must be given for each portion of the year during which each distinct authorized amount of capital stock or par value was in effect. The tax is then prorated for each portion of the year dividing the number of days the stock/par value was in effect by 365 days (366 leap year), then multiplying this result by the tax calculated for that portion of the year. The total tax for the year is the sum of all the prorated taxes for each portion of the year.

Use the state's Franchise Tax Calculator for estimating your franchise taxes.