When Delaware sends your annual Franchise Tax statement, you may find yourself shocked by what you owe. The high tax is often a result of having authorized too many shares of stock when forming your corporation. But we can help you save on your annual Delaware corporation franchise tax.
Delaware bases the tax you owe upon the total number of your corporation’s authorized shares. More than one business owner has made the mistake of authorizing a large amount of stock, only to get pinched later by a huge tax bill.
These are the kinds of problems we are here to help you solve. Is your current registered agent helping you save money? Are you tired of getting an annual bill but not getting any service? It’s easy to change your Delaware registered agent. We charge only $45 per year to act as your Delaware registered agent.
How to Amend Your Authorized Stock
When you filed your Certificate of Incorporation, you were asked to authorize a number of shares of stock. To lower the number of authorized shares (and save money on your corporation franchise tax), you need to amend your Certificate.
The Form to File: Certificate of Amendment
What It’ll Cost: $194 (for the first page, $9 per page for additional pages)
Who You File It With:
Delaware Division of Corporations
401 Federal Street, Suite 4
Dover, DE 19901
Fax to: 302-739-3812
Filing a Delaware Certificate of Amendment is pretty straightforward. You simply need to identify which Article you’re amending (for Domestic Corporations, you’re amending the Fourth Article). Then, in the space provided, you need to rewrite that particular Article with the new number of shares you want to authorize.
Filing the Certificate of Amendment
In order to make sure your certificate is processed as quickly as possible, be sure to:
- Fill out the form completely
- Write legibly
- Include a Cover Letter with your Name, Address, and Telephone/Fax Number
- Payment (Visa, MasterCard, Discover, American Express, Check, ACH Debit)
Delaware typically takes 3 weeks to process a filing. You can expedite the filing to Same Day ($200) or 24-Hour ($100).
Once your Amendment is approved, you will be on your way to saving money on your annual Delaware corporation franchise tax.