When Are Delaware LLC Taxes Due? (DE Franchise Tax Guide)
Delaware LLC taxes are due annually by June 1st, with a fixed $300 franchise tax — missing this deadline triggers an immediate $200 penalty plus monthly interest.
As a corporate attorney with over 10 years guiding LLC owners through Delaware's tax requirements, I've helped dozens of clients avoid costly compliance failures.
This guide covers every deadline, fee, and consequence you need to know to keep your LLC in good standing.
Quick Summary
- Payment methods for Delaware LLC taxes include Web Pay, mail, or credit card, emphasizing the importance of record-keeping for compliance.
- The Delaware Franchise Tax is necessary to maintain your LLC's good standing.
- I frequently warn my clients that non-payment of Delaware LLC taxes may lead to dissolution of their LLC.
What Is Due Date For Delaware LLC Taxes?
The annual due date of Delaware LLC taxes is June 1st each year [1]. All LLCs registered in Delaware are subject to the Delaware Franchise Tax.
Drawing from our experience, the Delaware Annual Franchise Tax Payments apply to LLCs established or registered within the state. Rather than being based on income, this tax is a flat $300 annual amount, regardless of the LLC's size, revenue, or share structure.
Failing to meet the tax requirements can lead to penalties or a loss of good standing. Delaware LLC owners must promptly pay their taxes to comply with state regulations.
For the latest and most accurate information, we recommend consulting the official website of the Division of Corporations or seeking professional advice.
What is Delaware Franchise Tax?
The Delaware LLC Franchise Tax is a flat $300 annual tax, due on or before June 1st each year. LLCs are not required to file an annual report — only the tax payment is required.
"Understanding the tax obligations and deadlines for a Delaware LLC is crucial for maintaining compliance and optimizing financial health. It's not just about meeting dates; it's about strategic planning and understanding the implications of Delaware's unique tax structure on your business."
- LJ Viveros, Distinguished Growth & M&A Transition Advisor, Former General Manager
In 2024, Delaware recorded 289,810 total business entity formations, with LLCs accounting for 72.9% — or 211,464 — of all new entities formed that year [2].
The tax applies to both domestic and foreign LLCs registered in Delaware and serves as a key revenue source for the state, enabling it to maintain the privileges and benefits offered to these businesses.
How Do I Pay Delaware Franchise Tax?
You can pay the Delaware Franchise Tax directly through the Delaware Division of Corporations.
All checks should be made payable to the Department of State and have the owner/member's name in which you are filing, the business name in which you are filing, and the file number.
There are a lot of convenient ways to pay your franchise tax. One that we use mostly is Web Pay. You can go to their website and set up an account [3].
Another method of paying your Delaware Franchise Tax is through the mail.
Another method of paying your Delaware Franchise Tax is through Credit Card – Online through Official Payments Corporation [4].
Read our article for more information on how to file business taxes for an LLC.
Do I Need to Submit Anything Else With My Tax Payment?
As a Delaware LLC, you are not required to file an Annual Report or submit any additional forms. Only the $300 annual franchise tax payment is required by June 1st each year.
What Happens if I Don’t Pay My Delaware LLC Tax?
The Division of Revenue may impose penalties and interest if you don’t pay your Delaware LLC tax.
Failure to pay by June 1st results in a $200 penalty plus 1.5% interest per month on the unpaid tax and penalty balance.
The Delaware Secretary has the power to dissolve an inactive LLC upon request of any interested party.
The LLC dissolution process starts when the Delaware Secretary serves a notice instead of an LLC annual report, which sets forth the steps to be taken by the member/manager to continue doing business in Delaware.
If no action is taken within four months after receipt of this notice, then Secretary shall dissolve the limited liability companies by issuing a certificate of dissolution under seal.
We advise you to take legal or tax advice regarding annual tax matters.
Related Articles:
- How to Open an LLC in Delaware
- Premium Registered Agents in Delaware
- Quality Formation Services for Your LLC in Delaware
FAQs
What is the Delaware Franchise Tax Division Contact Info?
The Delaware Franchise Tax Division Contact Info can be reached at the Delaware Department of State, Office of the Secretary, at 302-739-4251.
Alternatively, you can contact the Delaware Division of Corporations directly at (302) 739-3073 [5]. These contacts provide assistance and information regarding Delaware's annual tax requirements and payments.
What Is the Assumed Par Value Capital Method Franchise Tax in Delaware?
The Assumed Par Value Capital Method Franchise Tax in Delaware is a tax system the state implements for corporations. It calculates taxes based on assumed par value capital, which is determined by the number of authorized shares and their par value.
References:
- https://corp.delaware.gov/alt-entitytaxinstructions/
- https://corp.delaware.gov/stats/
- http://www.services.delaware.gov
- http://www.officialpayments.com
- https://corp.delaware.gov/contact/
This guide really helped me understand how to pay my Delaware LLC taxes online. Web pay seems like the easiest option.
Great breakdown of the tax system. I’ve been thinking of switching my LLC to Delaware.sounds like it’s worth the cost for the benefits the state offers.