How to File LLC Taxes in Delaware (2026)
A single-member Delaware LLC reports profit on Schedule C with Form 1040. A multi-member LLC files Form 1065. An LLC taxed as an S-corp files Form 1120-S. One taxed as a C-corp files Form 1120, plus Delaware's own corporate return if it has Delaware-source income.
Every Delaware LLC also owes a flat $400 annual tax to the Division of Corporations, due each June 1, regardless of how the IRS taxes it.
This page breaks down which Delaware and federal forms apply to each tax classification, the current rates for each and the state-only taxes, like gross receipts and unemployment insurance, that may also apply.
Quick Summary
- Two agencies split Delaware LLC taxes. The Division of Corporations handles the annual tax, and the Division of Revenue handles income and gross receipts tax.
- Confirm your due date and dollar figures on the state portal every year. Rates and penalties change, so don't rely on last year's numbers.
- Talk to a CPA before electing S-corp or C-corp status. The election changes which forms you file and what you owe.
Delaware LLC Tax Summary
The table below shows which form goes to which Delaware agency, by LLC tax classification, so you can see the paperwork before you file.
It also lists the state's flat annual tax: $400, due each June 1 [1]. That yearly tax is separate from what it costs to form an LLC in Delaware.
| LLC Type | Federal Form | State Form | Filed With | Filing Deadline & Tax Rate |
|---|---|---|---|---|
| Single-member LLC | Schedule C (Form 1040) | None - annual LLC tax only | Division of Corporations | June 1 - $400 |
| Multi-member LLC | Form 1065 | Form PRT-RTN (if DE-source income) | Division of Revenue | June 1 - $400 annual tax (Division of Corporations) |
| S-Corp election | Form 1120-S | Form SCT-RTN | Division of Revenue | June 1 - $400 annual tax (Division of Corporations). No entity-level state income tax. |
| C-Corp election | Form 1120 | Form CIT-TAX | Division of Revenue | April 15 - 8.7% of DE-apportioned income. Plus June 1 - $400 annual tax (Division of Corporations). |
How Delaware LLCs Are Taxed
Delaware taxes LLCs the way the IRS does by default. They're pass-through entities. The LLC itself pays no federal or Delaware income tax.
Profit passes through to the members, and each one reports it on their own return. See how LLC taxes work in more detail before you pick a classification.
Members can change that default. An LLC can file an election with the IRS to be taxed as an S-corp or a C-corp instead. Delaware follows whatever classification the IRS accepts.
Unlike a Delaware corporation, an LLC files no annual report in Delaware. It also owes no entity-level income tax by default. If you haven't formed your LLC yet, see how to start an LLC in Delaware before you choose a tax classification.
Delaware has not created its own pass-through entity tax election. LLC members here have no separate state-level workaround for the federal SALT cap.
1. Single-Member LLC: Form 1040 Schedule C
Single-member LLC owners file Schedule C with their personal Form 1040, the same as any sole proprietor. Delaware doesn't require a separate state income tax return for a single-member LLC.
2. Multi-Member LLC: Form 1065
Filing as a multi-member LLC means filing Form 1065, with each member reporting their share of the profit on a Schedule K-1.
If the LLC has Delaware-source income, it also files Delaware's partnership return, Form PRT-RTN, with the Division of Revenue, alongside its federal filing.
3. S-Corp Election: Form 1120-S
Form 1120-S covers S-corp elections. The LLC submits Form 2553 to the IRS first, then files Form 1120-S for the election to take effect.
Delaware recognizes the federal S election. So the LLC owes no Delaware corporate income tax on that pass-through income. It still files Form SCT-RTN with the Division of Revenue if it has Delaware-source income.
4. C-Corp Election: Form 1120
Electing C-corp status means the LLC files Form 1120 for the entity itself, separate from any member's own personal return.
Delaware taxes the share of that income tied to the state at 8.7%, reported on Form CIT-TAX with the Division of Revenue and due April 15 for calendar-year filers.
5. Delaware Income Tax Rate for Tax Year 2026
Delaware's personal income tax uses stepped rates. They run from 2.2% up to 6.60% on income of $60,000 or more [2].
That top rate is what applies to any profit an LLC member reports as personal income. Check the current rate on the Division of Revenue's site before you file. It applies on top of what your LLC pays at the entity level.
Federal Taxes Delaware LLC Owners Pay
Beyond the forms tied to your tax classification, Delaware LLC owners pay one more federal tax that has nothing to do with the state at all: self-employment tax.
Federal Self-Employment Tax
Self-employed LLC members pay a 15.3% federal self-employment tax on their net earnings, covering Social Security and Medicare [3]. That tax goes to the IRS only, since Delaware has no version of its own to file or pay.
Members also owe quarterly estimated payments to the IRS on this income, due April 15, June 15, September 15 and January 15 each year.
Other Delaware Taxes That May Apply
A handful of other Delaware taxes apply depending on what your LLC sells and whether it has employees, on top of the entity-level and income tax rules covered above.
1. Gross Receipts Tax and Sales Tax
Delaware has no general state sales or use tax. Instead, sellers of goods and services pay a gross receipts tax on their total revenue.
Rates run from 0.0945% to 1.9914%, based on what the business does [4]. Petroleum products pay a higher rate, up to 2.4218%.
Businesses get a monthly or quarterly exclusion before the tax kicks in, depending on the activity, from $100,000 up to $1,250,000. New businesses start out filing quarterly, with returns due the last day of the month after the quarter ends.
2. Employer Taxes: Unemployment Insurance
An LLC with employees registers for unemployment insurance with the Delaware Department of Labor. The taxable wage base is $18,500 per employee per year [5].
New employers pay a rate based on the average of all Delaware employers' rates over the past five years. Every employer also pays a small Operations and Technology assessment on top of its assigned rate.
3. Industry Taxes
Delaware's Division of Revenue also runs a few separate taxes just for certain industries. These cover alcohol makers, tobacco products, hotel and short-term rental stays, real estate transfers and petroleum wholesale.
If your LLC works in one of these fields, check with the Division of Revenue for the exact return and rate that applies to you.
Penalties for Missing the Delaware LLC Tax Deadline
Missing the June 1 deadline for the annual LLC tax adds a $200 penalty on top of what you owe, plus interest of 1.5% per month on the unpaid tax and penalty combined.
If the tax goes unpaid long enough, Delaware can cancel your LLC's certificate of formation, so it's worth paying on time even if the amount is small.
What Is Deductible for a Delaware LLC
Delaware offers a Volunteer Firefighter's Credit of up to $1,000 against a resident's personal income tax. It covers active volunteer firefighters, fire company auxiliary members and rescue squad members. Each spouse can claim one credit if both qualify.
Separately, the federal Qualified Business Income deduction lets many pass-through owners deduct up to 20% of their business income on their federal return [6]. It doesn't apply to income taxed at the C-corp level.
References:
- https://delcode.delaware.gov/title6/c018/sc11/index.html
- https://revenue.delaware.gov/frequently-asked-questions/personal-income-tax-faqs/
- https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
- https://revenue.delaware.gov/frequently-asked-questions/gross-receipts-tax-faqs/
- https://labor.delaware.gov/divisions/unemployment-insurance/employer-faqs/
- https://www.irs.gov/newsroom/qualified-business-income-deduction
FAQs
Do I Need to Pay an Annual Tax for an LLC in Delaware?
Yes, you need to pay an annual tax for an LLC in Delaware. Check the summary table above for the exact amount and due date, since it applies no matter how the IRS classifies your LLC.
Does Delaware Require LLCs to File an Annual Report?
No, Delaware LLCs don't file an annual report. Paying the annual tax is the only yearly requirement with the Division of Corporations, unlike Delaware corporations, which do file one.
Does Delaware Charge State Income Tax on LLC Profits?
No, Delaware doesn't charge income tax on LLC profits at the entity level. Members still owe the state's personal income tax on their share of that profit, at whatever rate applies to their income.
What Happens if I Miss the June 1 Deadline?
Missing the June 1 deadline triggers a penalty and monthly interest right away. If the tax stays unpaid too long, the state can also cancel your LLC's formation certificate, so it's best to pay as soon as you can.
