LLC Taxes & FeesDE

Delaware LLC Taxes & Annual Fees 2026: Complete Guide

Last updated: February 27, 2026

8 min read2,100 words

US Business Compliance Research Team

Expert LLC compliance researchers

Quick Answer

Delaware LLCs pay a flat $300 annual franchise tax due every June 1st — there is no annual report requirement for LLCs. Late payment triggers a $200 penalty plus 1.5% monthly interest. The initial formation fee is $90, making Delaware one of the most cost-effective states for LLC formation.

Key Takeaways

Delaware LLCs pay $300/year in franchise tax — no annual report form required
The June 1st deadline is fixed for all Delaware LLCs regardless of formation date
Late payment penalty is $200 + 1.5% monthly interest — can add up fast
Formation costs $90 (Certificate of Formation filing fee)
Delaware has no state income tax on LLC income for non-resident members
Foreign LLC registration in Delaware costs $200 (Certificate of Registration)

Item	Cost/Details	Notes
LLC Formation (Certificate of Formation)	$90	One-time filing fee
Annual Franchise Tax	$300	Due June 1 each year
Late Franchise Tax Penalty	$200 + 1.5%/month	Applied to unpaid balance
Foreign LLC Registration	$200	Certificate of Registration
Name Reservation	$75	Optional, 120-day hold
Certificate of Good Standing (short)	$50	Electronic available
Certificate of Good Standing (long)	$175	Certified/manual
Expedited Same-Day Filing	+$100	Add to base fee
Expedited Next-Day Filing	+$50	Add to base fee

Delaware Annual Franchise Tax

Delaware LLCs are subject to an annual franchise tax of $300, payable by June 1st each year. Unlike Delaware corporations — which face a complex franchise tax calculation based on authorized shares or assumed par value capital — LLCs enjoy a simple, flat $300 rate.

This simplicity is one of Delaware's most attractive features for LLC owners. There's no annual report to file, no complex calculations, and no uncertainty about how much you'll owe. Just one annual payment of $300 keeps your Delaware LLC in good standing.

Key Facts About the Delaware Franchise Tax

Amount: $300 flat rate for all LLCs
Due date: June 1st every year (fixed, regardless of formation date)
No annual report: LLCs are not required to file a separate annual report
Payment method: Online at corp.delaware.gov, by check, or by money order
Applies to: All Delaware domestic LLCs and registered foreign LLCs

Important: While Delaware requires no annual report for LLCs, this does NOT mean you have no compliance obligations. The $300 franchise tax must still be paid annually by June 1st. Missing this deadline triggers immediate penalties.

How to Pay the Delaware Franchise Tax

Visit corp.delaware.gov and navigate to the franchise tax payment section
Enter your Delaware file number (found on your Certificate of Formation)
Pay by credit card, debit card, or ACH bank transfer
Save your payment confirmation for your records

Formation & Filing Fees

Forming a Delaware LLC starts with filing a Certificate of Formation with the Delaware Division of Corporations. The base filing fee is $90.

Formation Fee Options

Standard filing ($90): Processing in approximately 1 week
Next-day expedited ($90 + $50 = $140): Processed the next business day
Same-day expedited ($90 + $100 = $190): Processed same business day if submitted before cutoff

Delaware's online filing system at corp.delaware.gov is straightforward. You can file directly or use a registered agent or formation service to handle the paperwork.

Other Filing Fees to Know

Name reservation: $75 (holds your desired LLC name for 120 days)
Certificate of Good Standing (short form): $50 (electronic version available)
Certificate of Good Standing (long form): $175 (certified/manual)
Registered agent change: $5
Amendment to Certificate of Formation: $200

State Tax Obligations for Delaware LLCs

Delaware's tax landscape for LLCs is more favorable than many assume — especially for non-residents.

Delaware State Income Tax

Delaware has a state income tax with rates ranging from 0% to 6.6%, but LLCs are pass-through entities. The LLC itself doesn't pay income tax. Instead, profits and losses flow through to each member, who reports them on their personal tax return in their state of residence.

For LLC members who don't live or work in Delaware, Delaware income tax generally doesn't apply to income earned outside the state. This makes Delaware particularly attractive for entrepreneurs who form a Delaware LLC but operate primarily in another state or remotely.

No Delaware Sales Tax

Delaware is one of the few U.S. states with no sales tax. If your LLC sells goods or services in Delaware, you don't need to collect state sales tax. This is a significant advantage compared to states with 6%–10% sales tax rates.

Federal Taxes Still Apply

Regardless of your Delaware LLC's state tax situation, federal taxes still apply. Single-member LLCs are taxed as sole proprietorships (Schedule C), while multi-member LLCs are taxed as partnerships (Form 1065) by default. You can also elect to be taxed as an S-corp or C-corp.

Tax Planning Note: If your Delaware LLC does business in multiple states, you may owe taxes in those states as well. Consult a tax professional familiar with multi-state taxation to optimize your structure.

Late Payment Penalties

Missing Delaware's June 1st franchise tax deadline triggers immediate penalties that compound over time.

Penalty Structure

Immediate $200 flat penalty assessed after June 1st deadline
1.5% monthly interest on the unpaid $300 franchise tax (= $4.50/month)
After 12 months: $300 (tax) + $200 (penalty) + $54 (interest) = $554 total

Extended non-payment leads to more serious consequences. Delaware may void or cancel your LLC's charter, effectively dissolving the company. At that point, reinstatement requires paying all back taxes, penalties, and interest, plus reinstatement fees.

Learn more about penalties and reinstatement in our dedicated guide: Delaware LLC Late Filing Penalties 2026.

Foreign LLC Costs in Delaware

If your LLC was formed in another state but wants to do business in Delaware, you must register as a foreign LLC by filing a Certificate of Registration.

Certificate of Registration fee: $200 (one-time)
Annual franchise tax: $300/year (same as domestic LLCs)
Delaware registered agent: $50–$300/year (required)
Certificate of Good Standing from home state: Varies by state

For full details on the foreign LLC registration process, see our guide: Delaware Foreign LLC Registration 2026.

Total First-Year Cost Breakdown

Here's what you can expect to pay in your first year as a Delaware LLC owner:

Minimum Cost Scenario

Certificate of Formation: $90
Annual franchise tax (if due in Year 1): $300
Serve as your own registered agent: $0 (if you have a Delaware address)
Total: $390

Typical Cost Scenario (with professional RA)

Certificate of Formation: $90
Annual franchise tax: $300
Professional registered agent: $50–$300/year
Total: $440–$690

Delaware vs. Other States: Delaware's $300 annual franchise tax is higher than many states (e.g., Wyoming's $60 minimum), but the legal infrastructure, investor familiarity, and Court of Chancery make it the preferred choice for businesses seeking outside investment or complex operating agreements.

Frequently Asked Questions

Do Delaware LLCs file annual reports?

No. Delaware LLCs are NOT required to file an annual report. Instead, they simply pay the $300 annual franchise tax by June 1st each year. This is one of Delaware's advantages — no paperwork, just a single annual payment. Corporations in Delaware do file annual reports ($50 fee for non-exempt), but that requirement does not apply to LLCs.

When is the Delaware LLC franchise tax due?

The Delaware LLC franchise tax of $300 is due every year on June 1st. Unlike corporations, the due date is the same for all Delaware LLCs regardless of when the LLC was formed. Payment can be made online at corp.delaware.gov. If June 1st falls on a weekend or holiday, payment is due the next business day.

What happens if I miss the Delaware LLC franchise tax deadline?

If you miss the June 1st deadline, Delaware assesses a $200 flat penalty immediately. Additionally, 1.5% monthly interest accrues on the unpaid franchise tax amount. If the franchise tax goes unpaid for an extended period, the state can void/cancel your LLC's charter, requiring reinstatement to continue doing business.

Does Delaware have state income tax for LLCs?

Delaware does have a state income tax (rates up to 6.6%), but LLCs are pass-through entities for tax purposes. The LLC itself does not pay Delaware income tax — instead, income flows through to members who pay taxes in their state of residence. For non-residents operating a Delaware LLC but doing business elsewhere, Delaware income tax generally does not apply to out-of-state income.

What is the total first-year cost of a Delaware LLC?

The minimum first-year cost is $90 (formation) + $300 (franchise tax if due in first year) = $390. You'll also need a registered agent — if you hire a professional service, expect $50–$300/year. Expedited filing adds $50–$100. So all-in, budget $140–$690 for the first year depending on your choices.

Can I pay Delaware LLC taxes online?

Yes. Delaware's Division of Corporations offers online payment for franchise taxes at corp.delaware.gov. You can pay by credit card or ACH. The online system is available 24/7, though the system goes offline briefly for annual maintenance.

Official Source

For the most up-to-date information, always verify requirements with the official Delaware Secretary of State website:

https://corp.delaware.gov

Important Disclaimer

This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.

Complete Delaware LLC Compliance Guide

View all Delaware LLC requirements, fees, and deadlines in one place.

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