Delaware LLC Franchise Tax — Annual Filing Guide
Delaware LLCs owe a flat $300 franchise tax every year, due June 1. Missing it triggers a $200 penalty plus 1.5% monthly interest — and the LLC is not in 'good standing' until paid.
What Delaware LLCs owe
Every Delaware LLC — active, inactive, revenue-generating, or dormant — owes an annual flat $300 franchise tax. There is no proration for LLCs formed mid-year and no reduction for LLCs with $0 income.
The $300 is not an income tax; it is a fee for the privilege of maintaining the LLC's legal existence in Delaware. It is separate from any federal or state income tax, and separate from the Registered Agent fee (typically $50-150/year, paid to a private agent).
Delaware Division of Corporations portal
1. Go to corp.delaware.gov → click "Pay Taxes and File Annual Reports".
2. Enter your LLC's Delaware File Number (7 digits, found on your Certificate of Formation).
3. Choose payment method: credit card ($1.50 convenience fee) or ACH from a US bank account.
4. Confirmation is emailed instantly. The Division of Corporations updates the LLC's status to "good standing" within 24 hours.
Note: unlike Delaware corporations, LLCs do not file an annual report — only pay the tax.
What happens if you miss June 1
On June 2, an automatic $200 late penalty is applied. Interest accrues at 1.5% per month on the unpaid balance ($300 + $200 = $500). After 90 days, the state can revoke the LLC's Certificate of Formation for administrative dissolution.
Reinstatement after dissolution requires paying all back taxes, penalties, interest, plus a $200 reinstatement filing fee. The LLC's original formation date is preserved but contracts signed during the dissolution period may be voidable.
Common compliance failures
- 01Assuming the Registered Agent will pay the franchise tax — most agents forward you a reminder but do not pay automatically.
- 02Confusing Delaware LLC franchise tax ($300 flat) with Delaware Corporation franchise tax (revenue-based, minimum $175).
- 03Paying only the Registered Agent renewal without paying the state — the LLC still loses good standing.
- 04Missing the deadline while abroad — no international grace period; June 1 is fixed.
FAQ
Yes. The $300 franchise tax is flat and unconditional. It is paid every year the LLC exists in Delaware, regardless of revenue, activity, or profitability.