The annual franchise tax of the Delaware LLC is due on June 1 every year. The annual report filing fee payable to the Secretary of State for Delaware must be paid on or before that date.
The Delaware Limited Liability Company (LLC) requires an annual franchise tax payment. Both single-member and multi-member are subject to this taxation which is borne solely by the LLC.
If the LLC has not filed its annual report and paid the annual franchise tax, then a penalty fee of $200 will start to accrue every month overdue and unpaid.
When this happens, additional fees must be paid to reinstate the Delaware LLC's good standing status: a $500 due by a significant date in September and an additional fee of $200 imposed on November 1.
What is Delaware Franchise Tax?
The Delaware LLC Franchise Tax, also known as the annual tax, is only one part of the Annual Report filing fee.
The other parts include a $300 report filing fee and a $50 registered agent fee, which are due annually on or before June 1 by 5 PM EST.
If you have not yet updated your Registered Agent/Service of Process Address within two years, then you must pay a separate $150 fee to do so.
If you have not yet filed your report within two years, an additional penalty of $250 will apply if the Delaware LLC remains inactive after November 1.
How Do I Pay Delaware Franchise Tax?
So you want to know how to pay franchise tax? Delaware Franchise Tax is payable to the Delaware Department of State. The annual Report Filing Fee (this includes the annual franchise tax) is currently $300.00.
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 of those is through Web pay. You can go to their website: www.services.delaware.gov and set up an account. Another method of paying your Delaware Franchise Tax is through the mail.
You can also pay your annual franchise tax in person at a Franchise Tax Board Field Office.
Another method of paying your Delaware Franchise Tax is through Credit Card – Online through Official Payments Corporation at: www.officialpayments.com.
Read more: How to File Business Taxes for an LLC
Do I Need to Submit Anything Else With My Tax Payment?
Yes. You must also file your State of Delaware Annual Franchise Tax Report.
It is extremely important that you do not forget to file the State's Annual Report because otherwise, a penalty fee will be imposed on you by the State.
The Annual Report filing fee for this process is $50, and it should be submitted along with your State Franchise Tax payment.
You can also submit the State Annual Report filing fee at the same time you submit your State Franchise Tax payment to avoid waiting in line.
What Happens if I Don’t Pay My Delaware LLC Tax?
Delaware LLC Non-Filing Fee is a penalty fee of $200 that starts to accrue every month. It is overdue and unpaid. If the LLC annual franchise tax remains unpaid after 12 months, an additional $500 will be imposed on September 1, and another additional fee of $200 will be imposed on November 1.
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 will serve a notice instead of an 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 LLC by issuing a certificate of dissolution under seal.
You should take legal or tax advice regarding franchise taxes matters.
Do LLC’s in Delaware Have to File an Annual Report?
No, unless they are required by their operating agreement to do so.
What Is the Annual Report Filing Fee?
Annual Report Filing Fee is the fee for filing Delaware LLC annual report. It includes sole or individual member Delaware franchise tax of $300, which has to be paid before November 1 every year, together with the Annual.
Delaware Franchise Tax Division Contact Info
Delaware Department of State, Office of the Secretary 302-739-4251; or Franchise Tax Board 1-800-2PAYTAX.
What Is the Assumed Par Value Capital Method Franchise Tax?
The assumed par value capital method is a way of calculating your Delaware LLC franchise tax. If you have not used this method in the past, you should contact an attorney or accountant for advice.