Key facts
- LLCs pay the Annual LLC Tax of $300, every year, by June 1.
- Corporations file the Annual Franchise Tax Report, every year, by March 1.
- A corporation’s tax depends on its shares, and the default method can produce a very large bill. Most small corporations pay much less with the other method.
- If it is late: a $200 penalty plus 1.5% interest a month. A corporation’s charter becomes void after a year unpaid; an LLC is cancelled after three years.
On this page
Delaware at a glance
- LLCs file
- Annual LLC Tax
- Due
- Every year, by June 1.
- State fee
- $300
- Window opens
- On January 1 of the year it is due.
- Corporations file
- Annual Franchise Tax Report
- Due
- Every year, by March 1.
- State fee
- $225
- Window opens
- On January 1 of the year it is due.
- If it is late
- A $200 penalty plus 1.5% interest a month. A corporation’s charter becomes void after a year unpaid; an LLC is cancelled after three years.
As published by the state, summarised by National Filing Corporation. Confirm before you rely on it.
LLCs: a flat annual tax
Delaware LLCs do not file an annual report. They pay the Annual LLC Tax, a flat $300, every year, by June 1. There is nothing to calculate.
Corporations: the franchise tax report
Corporations file the Annual Franchise Tax Report every year, by March 1. The tax is calculated from the company’s shares, by one of two methods. The authorized shares method is the default on the state’s notice; the assumed par value capital method uses the company’s gross assets and issued shares, and for a start-up with millions of authorized shares it is usually far lower.
If it is late
A $200 penalty plus 1.5% interest a month. A corporation’s charter becomes void after a year unpaid; an LLC is cancelled after three years.
Is your Delaware company in good standing?
Search it by name, file number or EIN to see the state’s record and the next payment due.
Questions
My company does no business in Delaware. Do I still pay?
Yes. The tax is owed by every company formed in Delaware, wherever it operates.
Is the Delaware franchise tax the same as income tax?
No. It is a tax for the right to exist as a Delaware company, owed whether or not the company has income.