More than 60% of Fortune 500 businesses choose to incorporate in Delaware, making it a popular state for business incorporation. However, this entails the obligation to pay Delaware franchise tax. Don’t worry if you filed your franchise tax incorrectly. These few actions will allow you to change it.
Determine the Type of Amendment in Step 1
Determine the sort of change you must make before you begin changing your Delaware franchise tax. Amendments might be either generic or specialized. When you need to change information that was included in your first filing, such as your firm address or the number of authorized shares, general adjustments are made. When you need to add or remove information, such changing the name of your company or appointing a new director, specific adjustments are made.
Step 2: Obtain the Appropriate Form
Once you have decided what kind of modification is required, you must obtain the right form. Use the Delaware Franchise Tax Amendment form to make general changes. Depending on the type of alteration you need to make, specific amendments require a particular form. On the website of the Delaware Division of Corporations, you may obtain all the required forms.
Step 3: Fill Out the Form
After obtaining the necessary form, you must fill it out. Be careful to submit accurate information and complete all relevant fields. Any supplemental records, like a certificate of amendment or a resolution from your board of directors, must be included.
Step 4: Submit the Modification You must file the form with the Delaware Division of Corporations after you have filled it out and affixed any required supporting documents. The amendment can be submitted in person, via mail, or online. You must register for an account on the Delaware Division of Corporations website before filing documents electronically. You will require a check or money order for the necessary filing fee whether you opt to file electronically or in person. Obtaining a Delaware Certificate of Good Standing A Certificate of Good Standing is a record that attests that your company has fulfilled all relevant state standards and is legitimate to conduct business in Delaware. You must make a request to the Delaware Division of Corporations in order to get a Certificate of Good Standing in the state of Delaware. Your request can be made in person, via letter, or online. $50 is the cost of a Certificate of Good Standing. Delaware’s statutory representation policy All corporations incorporated in Delaware are required to maintain statutory representation. This means that each corporation is required to keep a registered agent in Delaware who is qualified to accept legal documents on the company’s behalf. The registered agent must be accessible during regular work hours and have a physical Delaware street address. Registered Corporate Agent in California A person or organization qualified to represent a company in California is known as a registered corporate agent in California. This involves acting as the company’s point of contact in the state and accepting legal paperwork on the company’s behalf. The registered agent must be accessible during regular business hours and have an actual street address in California. It’s called “The Delaware Loophole” A legal tax technique known as the Delaware loophole enables firms to avoid paying taxes in the jurisdictions where they conduct business. This is due to Delaware’s friendly tax environment for corporations, which includes the absence of sales tax, inventory tax, and personal property tax. In order to avoid paying taxes in other states, many firms opt to incorporate in Delaware and then use the Delaware loophole. However, in recent years, this approach has generated controversy as some jurisdictions try to plug the tax revenue gap.