1. Is Delaware LLC Franchise Tax Really a “Franchise Tax”?
People often say “Delaware franchise tax” for everything Delaware-related, but Delaware rules differ by entity type. For most Delaware LLCs, the recurring obligation is a flat $300 annual tax. Delaware’s Division of Corporations also notes that for these alternative entities, there is no annual report requirement, but the annual tax is due on or before June 1, and late payment can trigger a penalty and monthly interest.
2. What Delaware LLCs Must Do Each Year
Delaware LLC yearly compliance is simple compared to many states. Most LLCs should plan for:
Annual compliance checklist
- Pay the Delaware LLC annual tax ($300): the recurring state requirement to keep the LLC active and in good standing
- Registered Agent renewal (if using a service): keep a valid agent/address on record
- Keep company details updated internally: owners, address, and records (helps with banks & vendors)
- Federal tax return (IRS): depends on SMLLC vs partnership vs S-corp election (IRS small business guidance)
- BOI updates (if applicable): update beneficial ownership info when required after changes (FinCEN BOI rules)
3. Delaware LLC Annual Report vs Tax (LLC vs Corporation)
Here’s the core confusion:
Delaware LLC (most cases)
- No annual report required
- Flat $300 annual tax
- Due: June 1 (for the prior year)
Delaware Corporation (common case)
- Annual Report + Franchise Tax required
- Due date is typically March 1
- Tax amount depends on method and corporate details
If you only remember one thing: Delaware LLCs usually don’t file an annual report—they pay a flat $300 annual tax.
4. Delaware LLC Due Date + Late Penalties
For Delaware LLCs and many alternative entities, the annual tax for the prior year is due on or before June 1. If you miss it, Delaware can add a $200 penalty plus 1.5% interest per month (official interest calculation).
STAY COMPLIANT
Click the button below and our team will guide you through Delaware’s LLC annual $300 tax payment and compliance—fast and correctly.
Get Compliance Help5. Where to Pay + What You’ll Need
Delaware LLC annual tax is typically paid through the Delaware Division of Corporations online payment portal . Before you pay, keep these details ready:
What you should keep ready
- Exact legal LLC name (as registered in Delaware)
- Your Delaware file number (entity number)
- A payment method (card/ACH depending on portal options)
- Your registered agent details (for internal records)
- Proof/receipt storage location (compliance folder)
Why founders use a compliance service
- Avoid missed June 1 deadline and late fees
- Keep receipts organized for banking and audits
- Get reminders + help when expanding to other states
| Feature | FormLLC | Provider A | Provider B |
|---|---|---|---|
| Built for non-US founders | ✅ Deep non-resident focus | ➖ Limited support | ➖ Generic templates |
| DE LLC annual tax reminders | ✅ June 1 tracking | ➖ Partial | ➖ DIY-heavy |
| Transparent pricing | ✅ No surprise upsells | ⚠️ Hidden add-ons | ⚠️ Tiered upsells |
| Human support (WhatsApp / email) | ✅ Dedicated support | ➖ Ticket-based | ➖ Slow response |
*Sample stats for illustration. Add your real numbers and link to verified reviews.
Delaware LLC compliance is simple, but missing the June 1 annual tax can create a “not in good standing” situation. Stay current to avoid delays with certificates, filings, banks, payment gateways, and vendor verification.
6. How to Pay Delaware LLC Tax (Step-by-Step)
Step 1: Find your Delaware LLC file number
Your Delaware file number is commonly shown on formation confirmations, invoices from your registered agent, or in Delaware’s official entity search results.
Step 2: Open the Delaware Division of Corporations payment portal
Delaware typically provides an online option to pay annual tax for alternative entities (LLCs/LPs/GPs). Use the official portal and choose the option for paying the annual tax (Delaware eCorp system).
Step 3: Enter your entity details and submit payment
Enter your Delaware LLC details carefully (name/file number), confirm the amount, and submit payment.
Step 4: Save proof of payment
Download or screenshot the confirmation and store it in your compliance folder (with year clearly labeled). This helps with good-standing requests and future banking reviews.
7. Tips to Stay in Good Standing
- Set reminders for June 1 every year (Delaware LLC annual $300 tax)
- Keep your registered agent active and paid
- Store all receipts and confirmations in a “Compliance Folder”
- If you expand to other states, keep DE good standing clean for smoother registrations
8. Fees, Penalties & Good Standing Risks
- Delaware LLC Annual Tax: $300 flat (most cases)
- Due date: June 1 (for the prior year)
- Late penalty: $200
- Late interest: 1.5% per month on tax and penalty
- Good standing impact: late/non-payment can block certificates
| Compliance Item | Typical Timing | Fee |
|---|---|---|
| Delaware LLC Annual Tax | Annually (prior year due by June 1) | $300 |
| Registered Agent Renewal | Annually | $100–$300 |
| Federal Income Tax Return | Annually | Varies |
| Delaware LLC Annual Report | Generally not required for LLCs | $0 |
9. Federal Compliance to Review Each Year
1. Federal tax return (IRS)
Your federal filing depends on classification: single-member LLCs often report on the owner’s return, partnerships file an informational return, and S-corp elections follow S-corp filing rules.
2. EIN (Employer Identification Number)
Many LLCs use an Employer Identification Number (EIN) for banking, payroll, and payment processors.
3. BOI updates (Corporate Transparency)
If ownership or key details change, you may need to update beneficial ownership information (where applicable). This is separate from Delaware’s $300 annual tax but should be checked during yearly compliance review.
4. Other recurring federal obligations
- Payroll tax filings if the LLC has employees
- Information returns (such as 1099 forms) when required
- Bookkeeping and receipts storage for audits and reviews
10. Conclusion
The biggest takeaway: Delaware LLCs typically don’t file a standalone annual report. Your recurring yearly obligation is usually paying the flat $300 Delaware LLC annual tax by June 1 (and keeping your registered agent active).
With FormLLC, you can stay compliant without confusion—our team helps you follow the right schedule, make the payment correctly, and keep your business in good standing.
11. Frequently Asked Questions
In most cases, Delaware LLCs do not file a standalone annual report. The recurring yearly requirement is typically paying the flat $300 annual tax (often called “LLC franchise tax”).
For most Delaware LLCs and other alternative entities, it’s a flat $300 annual tax.
The annual tax for the prior year is due on or before June 1 each year.
Late payment can trigger a $200 penalty plus 1.5% interest per month on the tax and penalty, and it can affect your LLC’s good standing.
Often, yes. The Delaware LLC annual tax is typically a flat fee that applies even if there was no income, as long as the entity is active on Delaware’s records during the tax year.
No. Delaware corporations have different rules (often annual report + franchise tax due around March 1). Delaware LLCs generally have a flat $300 annual tax due by June 1 and usually no annual report.
Pay the $300 annual tax on time, keep your registered agent active, and store proof of payment and compliance records.
