How to File an LLC Annual Report in Delaware? (The Guide)

Filing an annual report and paying the annual tax in Delaware is a business requirement that all business entities must complete once every year.

To assist you in understanding what needs to be done to file the report correctly, we teamed up with our team of LLC experts with fifteen years of experience and spent a month researching the Delaware Secretary of State’s website for the right information.

Here's a detailed summary of everything you should know regarding filing annual reports and franchise taxes in Delaware.

Quick Summary

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What Is a Delaware Annual Report?

A Delaware annual report is a legal document containing all your current business details, including name, business address, contact details of the director, and franchise tax information.

The Secretary of State mandates only corporations operating there to file the annual reports; limited partnerships and LLCs are exempted from filing the Delaware LLC annual report.

A Delaware yearly report is submitted along with the franchise tax every year.

There are two different methods for calculating the annual tax, and the Division of Corporations advises that you go with the one that yields the least tax amount.

You can calculate the franchise tax using the Authorized Shares Method or the Assumed Par Value Capital Method [1].

The minimum tax amount for using the Authorized Shares Method is $175, but the value increases based on the number of authorized shares as follows:

• $175 for 5,000 shares or less.
• $250 for shares between 5,001 – 10,000.
• An extra $85 for each additional share above 10,000; if your shares are 10,005, you'll pay $675 ($250 plus $425).
• The maximum tax rates for this method are up to $200,000.

When using the Assumed Par Value Capital Method in the tax report, you must provide the correct figures of all your issued shares and the total gross assets of the company.

Using the Assumed Par Value Capital Method, the minimum tax amount is $400, and the maximum is $200,000.

Note that the maximum franchise tax rate for both methods is $200,000 unless you enlist your Delaware corporation as a large corporate filer; in this case, your maximum tax amount will be $250,000 [2].

How to File a Delaware Annual Report?

To file a Delaware annual report, you must fill out your business details and pay the franchise tax online on the official Division of Corporations website.

To file your yearly report, visit the Delaware Corporations Information System (DCIS) [3]. Enter your 7-digit business entity file number, click continue and follow the onscreen filing instructions.

Note that the franchise tax amount will depend on the number of authorized shares your corporation holds; you should calculate it correctly before making the payment.

Once you complete, pay the filing fee and franchise tax using an acceptable credit/debit card (Visa, Mastercard, American Express, or Discover). If the total amount is more than $5000, you must pay using Electronic Payment (ACH Debit).

When making the payment click only once because multiple clicking could result in duplicate charges to your bank account.

1. Information Included in the Annual Report

The information provided in the Delaware yearly report contains the following:

• The principal address of the business.
• Name and full address of the officer or director.
• Correct details for your franchise taxes.
• Correct annual report filing fees.

2. Annual Report Due Dates

The yearly report and Delaware tax due date for domestic corporations is March 1st each year.

In case of a failure to submit it before the due date, the Delaware Division of Corporations will impose a $200 penalty and an increased tax rate of 1.5% per month on top of the unpaid balance [4].

The yearly report deadline for foreign corporations is June 30, and failure to file by this date will incur a $125 late filing fee.

Despite not having to submit a Delaware LLC annual report, LLPs, LLCs, and general partnerships must pay an annual tax of $300 by June 1 at the latest.

There is also a $200.00 annual report fee for late or unpaid payments, and the interest accrues at 1.5% monthly.

It's good that the Secretary of State’s office sends yearly report reminders to all Delaware registered agent services by December to ensure you don't miss the filing deadline the following year.

3. How Much Is the Annual Report Filing Fee in Delaware?

The annual report filing fee in Delaware is $50 for registered domestic corporations and $125 for foreign corporations.

Per the Delaware code, if you file the document as an Exempt Corporation, the report and the amended annual report will cost an annual fee of $25.

Who Needs to File an Annual Report in Delaware?

Domestic, foreign, and exempt corporations need to file an annual report in Delaware, plus the annual tax.

Domestic LLCs and foreign LLCs and general partnerships formed in this state do not submit Delaware LLC annual reports.

FAQs

Do You Need Help Filing Your Delaware Annual Report?

As a new business owner, you may find completing a yearly report stressful, especially since filing it wrongly or beyond the deadline may result in the termination of your legal business organization.

To avoid such extremes, we recommend hiring an expert like IncFile who comprehends the rules and regulations surrounding yearly reports in the Delaware Division.

IncFile has an efficient annual report service that will calculate your business's required annual taxes and file the yearly report on time. Additionally, you can contact their round-the-clock customer service if you have any legal concerns with running a Delaware business entity.