Delaware LLC Costs 2026: $110 to Form + $300/yr Franchise Tax
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 Certificate of Formation filing fee is $110 (per the Division of Corporations fee schedule revised August 1, 2024), so a do-it-yourself Delaware LLC costs $110 to form and $300/year to maintain.
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 $110 (Certificate of Formation filing fee, per the Aug. 1, 2024 schedule)
- Delaware has no sales tax, but businesses operating in-state owe gross receipts tax
- Foreign LLC registration in Delaware costs $200 (Certificate of Registration)
| Item | Cost/Details | Notes |
|---|---|---|
| LLC Formation (Certificate of Formation) | $110 | 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–$200 | Add to base fee |
| Expedited Next-Day Filing | +$50–$100 | 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 filing fee is $110 under the fee schedule revised August 1, 2024. (Older state forms still quote the prior $90 figure, but $110 is the current total — filing fee plus the county recording and municipality charges for a one-page document.)
Formation Fee Options
- Standard filing ($110): Processing in approximately 1 week
- Next-day expedited (+$50 to $100): Processed the next business day
- Same-day expedited (+$100 to $200): Processed same business day if submitted before the 2:00 p.m. ET 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. For a full overview of Delaware compliance deadlines and requirements, see our Delaware LLC compliance hub.
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 graduated personal income tax with rates from 2.2% up to a top rate of 6.6% (the top bracket starts at $60,000 of taxable income; income under $2,000 is taxed at 0%). 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 Sales Tax — But a Gross Receipts Tax
Delaware is one of the few U.S. states with no sales tax, so your LLC never collects sales tax from Delaware customers. In its place, businesses that actually operate in Delaware owe a gross receipts tax — a seller-side tax on total revenue (no deductions for cost of goods or expenses). Rates run roughly 0.0945% to 0.7468% depending on business activity, and a monthly or quarterly exclusion applies before tax is owed. An out-of-state member running a Delaware holding LLC with no Delaware operations generally won't trigger it, but anyone selling into or operating within the state should check with the Division of Revenue.
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 — see our Delaware registered agent guide)
- Certificate of Good Standing from home state: Set by your home state (Delaware accepts one dated within 6 months of filing)
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: $110
- Annual franchise tax (if due in Year 1): $300
- Serve as your own registered agent: $0 (if you have a Delaware address)
- Total: $410
Typical Cost Scenario (with professional RA)
- Certificate of Formation: $110
- Annual franchise tax: $300
- Professional registered agent: $50–$300/year
- Total: $460–$710
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?
When is the Delaware LLC franchise tax due?
What happens if I miss the Delaware LLC franchise tax deadline?
Does Delaware have state income tax for LLCs?
What is the total first-year cost of a Delaware LLC?
Can I pay Delaware LLC taxes online?
Official Source
For the most up-to-date information, always verify requirements with the official Delaware Secretary of State website:
https://corp.delaware.govImportant 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.
Related Delaware LLC Articles
Delaware Registered Agent Requirements 2026
Who can serve as a registered agent for your Delaware LLC and what the requirements are.
Can I Be My Own Registered Agent in Delaware?
Pros, cons, and requirements for self-serving as your own Delaware registered agent.
Delaware Foreign LLC Registration 2026
How to register your out-of-state LLC to do business in Delaware. $200 fee and requirements.
Delaware LLC Late Filing Penalties 2026
What happens if you miss Delaware's June 1st franchise tax deadline and how to fix it.
Complete Delaware LLC Compliance Guide
View all Delaware LLC requirements, fees, and deadlines in one place.
View DE State GuideOr compare Delaware to every state on the annual report deadlines hub.