OK. So the title isn’t 100% accurate since the taxes I am referring to are not the ones that most start ups might think of. These are not exactly the same as IRS-type taxes, rather these are “taxes” that states require for your entity to stay in good standing. These are your annual maintenance fees so you don’t get a letter saying your Inc. or LLC is in trouble.
These are some deadlines coming up for business entities in the most popular states we assist clients with formations. Delaware calls one of its fees a “franchise tax”, which can be confusing at times. The general idea is that the DE “franchise tax” works similar to an annual fee based on the par of your stock and/or value of your assets.
Delaware Corporations
- Franchise taxes – Due before March 1
- Assumed par value method
- $350 minimum fee
- $180K max fee (if owe more than $5k, pay quarterly)
- Authorized share method
- $75 minimum fee
- $180K max fee (if owe more than $5k, pay quarterly)
- Annual report -Due before March 1
- $50 fee
- $125 late fee penalty if after March 1
- Pay and file both online here
Delaware LLCs
- No Annual report
- Annual tax – Due before June 1
- $250 fee
- $200 late fee if after June 1
- Pay and file online here
Massachusetts Corporations
- Annual report – Due within 2.5 months after close of fiscal year (for most companies this will be due February 15 if you use December 31 as your fiscal year end)
- $100 if filed online, $125 if filed by paper
Pay and file here
Massachusetts LLCs
- Annual report – Due on or before March 9
- $500 fee
- Pay and file here
These are fairly straightforward dates and amounts that you can budget for early on in 2012, with the exception of the DE franchise taxes, which require a bit of calculating based on your unique situation.
Assisting clients with managing corporate filing dates and creating new entities is something my firm, Ascentage Law, does regularly. If you have any questions, please feel free to contact me.
Because everyone’s situation is unique, you should consult an attorney and/or accountant to determine how the deadlines above apply to your situation.
