Business Compliance
Why Is the Delaware LLC Franchise Tax Increasing? Here are the Key reasons for the HB 400 Franchise Tax increase: Generating additional state revenue for Delaware’s operating budget. Updating fees that had not kept pace with inflation and administrative costs. Supporting Delaware’s business infrastructure, including the systems and services used to process about 360,000 new […]
Franchise Tax
What Is The Delaware Franchise Tax, Again? The Delaware Franchise Tax is an annual requirement that all companies registered in Delaware have to complete. The State of Delaware requires every registered LLC to pay a flat fee of $400 each year to remain in good standing, regardless of business activity. The term “Franchise Tax” can […]
Delaware LLC
What Happens If I Don’t Pay the Delaware Franchise Tax? If a company fails to pay franchise tax, it will eventually lose its good standing status. When an LLC loses good standing status, it also loses its limited liability protections. This exposes members to personal liability they would otherwise not have if they paid […]
Delaware Corporation
If you’ve formed an LLC but haven’t done business this year, you may be wondering if you need to pay the Delaware franchise tax. Here’s what you need to know. What Is the Delaware Franchise Tax, Again? Franchise “Tax” is often misinterpreted to mean that the fee will be calculated based on profits or […]