{"id":264190,"date":"2022-09-05T16:39:29","date_gmt":"2022-09-05T16:39:29","guid":{"rendered":"https:\/\/siit.co\/guestposts\/?p=264190"},"modified":"2024-01-08T18:20:50","modified_gmt":"2024-01-08T18:20:50","slug":"how-do-i-calculate-the-delaware-franchise-tax","status":"publish","type":"post","link":"https:\/\/siit.co\/guestposts\/how-do-i-calculate-the-delaware-franchise-tax\/","title":{"rendered":"How do I calculate the Delaware franchise tax? Clerky"},"content":{"rendered":"

\"delaware<\/p>\n

Each shareholder must pay federal taxes on their respective portions of the income. A typical company must first be established before electing \u201cS\u201d status by submitting a particular form to the IRS. Unlike a standard corporation, an S company often isn\u2019t liable to a separate federal income tax.<\/p>\n<\/p>\n

The franchise tax is an additional state tax imposed on certain enterprises in exchange for permission to operate legally and conduct business in a specific area. If so, that document can be sent directly from the Delaware Secretary of State. This document certifies the date the company was formed, that the company is current, and that the company is in good standing. The annual Registered Agent fee is paid to Harvard Business Services, Inc. for you to act as an agent of your business in the state of Delaware. If your Delaware franchise tax is submitted late, a $125 late fee and interest fee of 1.5 percent will be charged.<\/p>\n<\/p>\n

How to Calculate the Franchise Tax using the Authorized Share Method Calculation?<\/h2>\n<\/p>\n

So if your Delaware corporation has a million authorized shares, your annual franchise tax will be approximately $7,500. Typically, this corporation is better off to use the second calculation option. You can calculate your corporation\u2019s franchise tax using the Assumed Par Value Capital Method when you file the annual franchise tax report on the Delaware Division of Corporations website.<\/p>\n<\/p>\n