Important Franchise Tax Update

Effective August 1, 2010, the State of Delaware made changes that affect the annual franchise tax filing for certain types of companies.

The minimum amount due for Maximum Stock corporations (those companies that have over 5000 authorized shares) has increased.  Maximum Stock corporations that file under the Assumed Par Value Capital Method will now be assessed a minimum amount due of $350.  The standard $50 annual report fee will also be added to this amount due, for a new minimum amount due of $400.

The annual franchise tax fees for Non Stock corporations have also increased.  Non Stock corporations will now pay $75 franchise tax, in addition to the $50 annual report fee.  Therefore, the new minimum amount due for Non Stock companies will be $125.

All fee changes are effective for the 2010 franchise tax year, and will be due by March 1, 2011.  Harvard Business Services will start sending reminder notices beginning in October 2010, so there will be ample opportunity to make timely payment arrangements.

As always, we can assist with the filing of the annual franchise tax report for a nominal fee for any company you may have, whether it is registered with us or not.

Harvard Business Services is always here to assist with any franchise tax questions or concerns you may have.  Feel free to contact our office via email (franchisetax@delawareinc.com) or telephone 1-800-345-2677, ext. 6901 (1-302-645-7400 outside of US) and we would be glad to help.