Delaware corporations owing $5,000 or more in estimated franchise tax must make quarterly estimated payments throughout the year, rather than paying the full amount at the March 1 filing deadline.
These quarterly estimated payment rules apply to Delaware corporations subject to franchise tax under Title 8 of the Delaware Code. Delaware LLCs, LPs, and GPs follow a different regime (a flat $300 annual tax due June 1, with no quarterly estimated payments).
Under Delaware law, your tentative estimated tax is based on the annual franchise tax you owed for the preceding year. So if your corporation paid $5,000 or more in franchise tax last year, you should expect to make quarterly payments this year.
Estimated payments are due as follows:
For example, if your company owed $100k in franchise taxes last year, your estimated quarterly payments would be:
When you complete the franchise tax filing, you'll owe whatever is calculated, less estimated tax already paid. Your franchise tax may change from year to year.
You can file and pay Delaware franchise tax online via the Delaware Division of Corporations' eCorp portal. You will need your company's Business Entity File Number (Delaware entity number).
You can also view your franchise tax assessment and tax due through Delaware's online services, including the eCorp system and the paid "status with tax & history information" lookup.
Discern customers can digitally calculate and file their Delaware franchise taxes directly from the product, in minutes. We also notify you when quarterly estimated tax payments are due, and provide guidance and tracking to help you stay compliant.
Ready to automate franchise taxes and ongoing compliance in Delaware? Book a Discern demo today.
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