Every Delaware corporation must file its annual report and pay franchise tax by March 1 each year (March 1, 2026 for the 2025 report), whether or not it did business or earned income in Delaware. Tax ranges from a $175 minimum under the Authorized Shares method (or $400 minimum under the Assumed Par Value Capital method) up to $200,000 ($250,000 for large corporate filers). Missing the deadline triggers a $200 penalty plus 1.5% monthly interest and loss of good standing.
Home › Founders News › Regulations
Delaware C-corps must file the annual report and franchise tax by March 1, 2026
Why this matters for founders
If you are a Delaware C-corp (the default for VC-backed startups), calendar March 1 and compute tax with the Assumed Par Value Capital method, which usually produces a far smaller bill than the default Authorized Shares estimate. Lost good standing can stall a financing or M&A closing until it is cured.
Source: Delaware Division of Corporations — Pay Taxes / File Annual Report
Get briefs like this tuned to your business.
In the app, Founder Briefs are personalized to your country, industry and stage, and you can save the ones that matter.
Related updates
More that helps you.
FTC pivots to case-by-case noncompete enforcement; states pass their own bans
There is no federal FTC noncompete ban in effect — the 2024 rule was blocked and the FTC dropped its Fifth Circuit appeal on September 5, 2025. Instead the FTC is enforcing case-by…
Most US small businesses now exempt from Corporate Transparency Act BOI filing
In March 2025 FinCEN flipped the Corporate Transparency Act rules: entities formerly treated as "domestic reporting companies" are exempt from beneficial ownership information (BOI…
California statewide minimum wage rises to $16.90/hour on Jan 1, 2026
California's statewide minimum wage increased from $16.50 to $16.90 per hour effective January 1, 2026, applying to employers of all sizes. The white-collar exempt-employee salary…
IRS 1099-K threshold reverts to $20,000 and 200 transactions; the $600 rule is repealed
Under OBBBA the Form 1099-K reporting threshold for third-party payment platforms (Stripe, PayPal, Square, marketplaces) reverts to more than $20,000 in gross payments AND more tha…
Keep exploring
Related across the site
ToolDocuSignDocuSign lets you send documents for legally binding electronic signature and track their status. It handles contracts, NDAs, offer letters, and other agreements with an audit trail.ToolLegalZoomLegalZoom helps you form an LLC or corporation and access legal documents, registered agent service, and attorney consultations. It walks non-lawyers through business formation filings.TermLLC vs. C-CorpThe two most common US business structures: an LLC offers pass-through tax and flexibility; a C-corp is standard for raising venture capital.AI advisorWally the WorrierGaps & loose endsGuideBook an annual legal checkup, stay safeContracts drift, laws change, and policies go stale. A once-a-year legal review with your lawyer catches problems while they are small, cheap, and fixable on your schedule.GuideGet business insurance before day oneGeneral liability coverage protects you from one slip, fire, or claim that could cost more than a year of revenue, and unlocks the contracts landlords require.