Paying Franchise Taxes

Overview

Franchise Tax is an annual obligation required by your state of formation to keep your business in good standing. In Delaware, Franchise Tax must be paid regardless of your business revenue or profit. Other states may refer to this as an Annual Report fee. This guide walks you through the payment process within the StartGlobal portal.

Before You Begin

1. Navigate to the Compliance Dashboard

1. What to do: Click "Compliance" in the left sidebar navigation.

2. What you will see

   Your Business Status Card and compliance tabs.

2. Locate the Franchise Tax or Annual Report Card

1. What to do: Look for the card titled "{State} Franchise Tax {Year}" (for Delaware) or "{State} Annual Report {Year}" (for other states).

2. What you will see

   The card displays the amount due, a "Due in X Day(s)" badge in orange, and a description of the obligation. If the due date has passed, you will also see a red Penalty badge showing "+ ${amount} Penalty".

3. Review Penalty Information (If Applicable)

1. What to do: Read the penalty notice on the card if one is displayed.

2. What you will see

   A message such as: "Penalty for non-payment in {State} is $200 penalty + 1.5% interest charged monthly." Below that, a caution notice: "If you don't pay your {TaxType} for two years, your LLC will be canceled in the State. Reinstatement will cost you an additional $500."

4. Calculate Your Tax (Delaware C-Corporations Only)

1. What to do: If you are a Delaware C-Corporation, click the "Calculate Tax" button on the card.

2. What you will see

   A dialog box opens asking you to enter your total number of authorized shares and total gross assets. Enter the values and the system will compute your franchise tax amount.

5. Mark If Already Paid Outside StartGlobal (Optional)

1. What to do: If you have already made this payment directly with the state, check the box labeled "I've already made this payment outside StartGlobal".

2. What you will see

   The payment section is replaced with a file upload area where you can upload your State Annual Report Confirmation document as proof of payment.

6. Proceed with Payment Through StartGlobal

1. What to do: If you have not paid outside StartGlobal, review the amount due and click the payment button.

2. What you will see

   A secure payment form where you can enter your card details and complete the transaction.

7. Confirm Your Payment

1. What to do: After payment, review the confirmation screen.

2. What you will see

   A success message confirming your franchise tax payment has been received, along with a receipt.

What Happens Next

• After you submit your payment, StartGlobal will file the franchise tax or annual report on your behalf with the state.
• You will see a Filing In Progress card with the badge "Filing In Progress", the title "We are currently Reviewing your Documents", a "State Annual Report" service type badge, and an estimated processing time of 48 Hours.
• Once the filing is complete, your compliance status will update to VALID and you will be able to download the filed documents.