---
title: "Assemble the annual franchise tax report, without a solvency resolution"
url: "https://ailawframework.com/practice/commercial-and-corporate-advisory/assemble-the-annual-review-file-and-the-directors-solvency-resolution/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A1-X20260927-3-US"
practice_area: "Commercial & Corporate Advisory (contracts, company law, governance)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Assemble the annual franchise tax report, without a solvency resolution

> List the items § 502 requires the annual franchise tax report to contain, and leave every figure and address blank for the lawyer to take from the records. Do not add a solvency resolution and do not sign the report.…

Canonical page: https://ailawframework.com/practice/commercial-and-corporate-advisory/assemble-the-annual-review-file-and-the-directors-solvency-resolution/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Commercial & Corporate Advisory (contracts, company law, governance)](https://ailawframework.com/practice/commercial-and-corporate-advisory.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | List the items § 502 requires the annual franchise tax report to contain, and leave every figure and address blank for the lawyer to take from the records. Do not add a solvency resolution and do not sign the report. State law governs, and the lawyer confirms the governing state. For example, the Delaware General Corporation Law. Delaware is the most common state of incorporation. |
| What the lawyer must review | Section 502: annually on or before March 1, every corporation incorporated under Chapter 1, or which has accepted the Constitution of this State, shall make an annual franchise tax report to the Secretary of State on a form the Secretary designates. It is signed by the president, secretary, treasurer, another authorized officer, a director, or, for an initial report if the board has not been elected, an incorporator. The report states the registered office, the agent for service, the nature of the business, the principal place of business, the directors as of the filing date and the officer who signs, and the authorized shares and par value, or that shares are without par value, plus whatever else the Secretary requires to ascertain the tax. Unless the corporation keeps its principal place of business in Delaware and serves as its own registered agent, that address is not the registered office. A knowing false statement by an officer or director is perjury under § 502(b). Failure to file a complete report by March 1 adds $200 to the franchise tax. Section 510: neglect or refusal for one year to pay the franchise tax, or to file a complete report, makes the charter void and the corporate powers inoperative, unless the Secretary has given further time for good cause. You open the current form. You do not add a solvency resolution. The statute does not require one. State law governs, and the lawyer confirms the governing state. For example, the Delaware General Corporation Law. Delaware is the most common state of incorporation. |
| Written for | United States |
| Applies to | [Assemble the annual review file and the directors' solvency resolution](https://ailawframework.com/practice/commercial-and-corporate-advisory/assemble-the-annual-review-file-and-the-directors-solvency-resolution.md) |

## Checking plan

- What the AI does: List the items § 502 requires the annual franchise tax report to contain, and leave every figure and address blank for the lawyer to take from the records. Do not add a solvency resolution and do not sign the report. State law governs, and the lawyer confirms the governing state. For example, the Delaware General Corporation Law. Delaware is the most common state of incorporation.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- There is no solvency resolution in § 502. Do not add one.
- The tax rates are in § 503, which was not used for a figure. Do not invent one.
- State law governs; confirm the governing state before relying on this.

## Sources

- [Delaware General Corporation Law, Title 8, Chapter 5 (franchise tax)](https://delcode.delaware.gov/title8/c005/index.html) (checked 2026-10-22)
- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [ASIC Form 388: copy of financial statements and reports](https://ailawframework.com/precedents/commercial-and-corporate-advisory/form-asic-388-financial-reports.md) | Form | Yellow | Link to ASIC Form 388, the cover for annual financial reports lodged by the companies and schemes named on the form page. The page says there is no fee for the rows it lists. |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*