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Exempt Domestic Corporations

Filing Annual Report & Franchise Tax

Foreign Corporations

Exempt Domestic Corporations

Corporations Ending Their Existence or Renewing Status

Delaware Code allows a qualified domestic corporation to file as an exempt corporation which does not pay a tax but must file an Annual Report by March 1st each year. Exempt domestic corporation Annual Report filing fee is $25.00. Delaware Code defines an Exempt Corporation as follows:

In order to file as an exempt corporation one must meet the requirements of 391 (j) as follows: “...the term “exempt corporation” shall be defined as any corporation organized under this chapter that is not authorized to issue capital and that:

> Is exempt from taxation under § 501(c) of the United States Internal Revenue Code or any similar provisions of the Internal Revenue Code, or any successor provisions:

> Qualifies as a civic organization under § 8110(c)(1) of Title 9 or § 6840(4) of Title 16;

> Qualifies as a charitable/fraternal organization under § 2593(1) of Title 6;

> Is listed in § 8106(a) of Title 9;

> Is organized primarily or exclusively for religious or charitable purposes; or

> (i) is organized not for profit and (ii) no part of its net earnings inures to the benefit of any member or individual.”

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