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State Annual Report Deadlines are Approaching

State Annual report deadlines are almost here – and it’s your responsibility to file them on time!

All corporations doing business in Delaware must file an Annual Report.  For corporations incorporated in Delaware, the due date is March 1, 2024.  The annual filing fee is $50.  Corporations organized in another state but registered to do business in Delaware have until June 30, 2024.  The filing fee for foreign corporations is $125.  All LLCs or LPs doing business in Delaware have until Saturday, June 1, 2024 to file and the filing fee is $300.  Failure to file this form can result in penalties and interest. The Annual Report must be filed online at Delaware Division of Corporations.

In addition to the Delaware Annual Report filing fee, Delaware corporations must pay a Delaware Franchise Tax. The Delaware Franchise Tax can be calculated using two methods: (1) The Authorized Shares Method or (2) The Assumed par Value Capital Method. Delaware provides the calculation for the Authorized Shares Method based on the number of authorized shares; however if you believe the tax would be lower using the Assumed Par Value Capital Method, you may do a separate calculation and pay the lower tax. The minimum franchise tax for corporations using the Authorized Shares Method is $175.  The minimum franchise tax for corporations using the Assumed Par Value Capital Method is $400.

All corporations authorized to transact business in Massachusetts must file an Annual Report within two and a half (2.5) months after the end of the corporation’s fiscal year. The deadline for Massachusetts Corporations with a year end of December 31, 2023 is March 15, 2024. Massachusetts LLCs are required to file this form on or before the anniversary of the filing date of original Certificate of Organization. For Massachusetts entities, filing this form can be completed online at the Secretary of the Commonwealth of Massachusetts website.

If your company is operating in other states, it could have other reporting obligations outside of the common Delaware/Massachusetts filings we see with our client base. We recommend discussing your annual report filing obligations with legal counsel and setting annual reminders for each jurisdiction’s due date.

We hope that you have found this reminder helpful and if you have any questions, please reach out to your KN+S tax professional.

Katz, Nannis + Solomon, P.C. If you have any questions or would like to speak with one of our professionals, please contact our office at 781-453-8700.

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