Delaware · Delaware Division of Corporations
Division of Corporations franchise tax notice
Annual Franchise Tax Report notice · Franchise tax delinquency notice · Void or forfeiture notice
- What it is
- Every Delaware corporation files an annual report and pays franchise tax by March 1, computed by the authorized-shares method or the assumed-par-value-capital method, whichever is lower. The notice is usually a large authorized-shares computation that the alternative method reduces, or a delinquency that risks the charter becoming void.
- The clock it starts
- The annual report and franchise tax are due March 1. A late filing carries a penalty and monthly interest from the due date; continued delinquency leads to loss of good standing and, after the statutory period, a void charter.
- What a response has to establish
- The recomputation under the assumed-par-value-capital method with the gross-assets figure from the federal return, and the cure of any delinquency to restore good standing.
- Authority
- 8 Del. C. §503
- 8 Del. C. §502
- 8 Del. C. §504
- 8 Del. C. §505
- 8 Del. C. §501
What CitedTax drafts for this notice
A memo that recomputes the franchise tax under both methods and states the cure for a delinquency, cited to Title 8.
One credit. Upload the notice, state the firm's position and the facts, and the draft comes back in about thirty minutes with every claim graded against the cited text.
Other Delaware notices
- Notice of Proposed Assessment Division of Revenue proposed assessment
For tax professionals. The date printed on the notice controls. CitedTax is a research and drafting tool; the reviewing professional validates every item before reliance.