Educational Resource — June 2026 Delaware fees, payment systems, penalties, and entity-status rules can change. Verify current tax amounts and payment instructions with the Delaware Division of Corporations before paying.

Quick answer: what is the Delaware LLC annual tax?

The Delaware LLC annual tax is a flat $300 yearly tax for Delaware LLCs. It is due on or before June 1 each year.

Delaware LLCs do not file annual franchise tax reports with the Division of Corporations. That is different from Delaware corporations, which have annual report and franchise tax rules of their own.

Short answer

A Delaware LLC pays a $300 annual tax by June 1. The tax is not based on profit, revenue, or activity, and Delaware says there is no proration for alternative entity taxes.

Delaware LLC annual tax overview

The Delaware LLC annual tax is one of the main ongoing costs of keeping a Delaware LLC active. Many people call it the Delaware LLC franchise tax, but Delaware's LLC, LP, and GP instructions describe it as the annual tax for these alternative entities.

The important practical rule is simple: if your Delaware LLC is active in the Division of Corporations records during the tax year, budget for the $300 annual tax.

Item Rule Notes
Annual LLC tax $300 Flat yearly tax for Delaware LLCs.
Due date June 1 Due on or before June 1 each year.
Annual report Not required for LLCs Delaware LLCs pay the tax but do not file an annual franchise tax report.
Late penalty $200 Added if the required annual tax is not paid on time.
Interest 1.5% per month Applied to unpaid tax and penalty.
Proration No Delaware says there is no proration on alternative entity taxes.

For a broader cost breakdown, read: Delaware LLC Cost .

When is the Delaware LLC annual tax due?

The Delaware LLC annual tax is due on or before June 1. Delaware says the annual taxes for the prior year are due by June 1.

This wording matters. The payment is tied to the entity's annual tax obligation in Delaware records, not to whether the LLC had profit or whether the owner remembered to use the business.

Situation What to expect
LLC was active for the full year The $300 annual tax is generally due by June 1.
LLC made no money The $300 annual tax can still apply.
LLC was formed late in the year Delaware says there is no proration on alternative entity taxes.
LLC is foreign but registered in Delaware Delaware says domestic and foreign LLCs registered in Delaware are covered.
Owner lives outside Delaware The Delaware annual LLC tax can still apply if the LLC is active in Delaware records.
Do not wait until the last day

If the payment system is unavailable, your file number is wrong, or your account shows an unexpected balance, fixing the issue can take time. Pay before June 1 when possible.

Does a Delaware LLC file an annual report?

No. Delaware LLCs do not file annual franchise tax reports with the Division of Corporations.

This is one of the most common Delaware LLC search confusions. People search for “Delaware LLC annual report,” “Delaware LLC annual report fee,” or “Delaware annual franchise tax report LLC,” but the LLC rule is different from the corporation rule.

Entity type Annual report? Annual payment?
Delaware LLC No annual report with the Division of Corporations $300 annual tax
Delaware LP No annual report with the Division of Corporations $300 annual tax
Delaware GP No annual report with the Division of Corporations $300 annual tax
Delaware corporation Annual report required Corporation franchise tax rules apply

If you are researching a corporation instead of an LLC, do not use LLC annual tax rules. Delaware corporation franchise tax and annual report rules are separate.

Who has to pay the Delaware LLC annual tax?

Delaware says all domestic and foreign LLCs, LPs, and GPs formed or registered in Delaware are required to pay the annual tax. That means the rule can apply to both Delaware-formed LLCs and foreign LLCs that registered to do business in Delaware.

The tax is not limited to LLCs with revenue. If the entity is active in Delaware records at any time during the year, Delaware says the annual tax is assessed.

LLC situation Annual tax issue
Domestic Delaware LLC Generally owes the $300 annual tax.
Foreign LLC registered in Delaware Generally owes the $300 annual tax.
LLC with no revenue Can still owe the $300 annual tax.
Dormant LLC Can still owe tax if active in Delaware records.
LLC cancelled before the tax year Check Delaware records and final obligations.
LLC formed late in the year No proration under Delaware alternative entity tax instructions.

What happens if the Delaware LLC annual tax is late?

Delaware states that failure to pay the required annual tax results in a $200 penalty plus 1.5% interest per month on the tax and penalty. This can make a missed $300 payment grow quickly.

Late payment can also affect the LLC's ability to stay in good standing. That matters when banks, lenders, investors, courts, or other states ask for official proof that the company is current.

Late item Amount or effect Why it matters
Annual tax $300 The base annual LLC tax due by June 1.
Late penalty $200 Added if the required annual tax is not paid on time.
Interest 1.5% per month Delaware applies monthly interest to tax and penalty.
Good standing issue Status consequence May block certificates, filings, or business transactions until fixed.
Late tax can affect business records

If a Delaware LLC falls out of good standing, it can create problems with banks, investors, foreign registration, contracts, or closing the entity. Pay the annual tax and resolve old balances before they interfere with another filing.

How to pay the Delaware LLC annual tax online

Delaware provides an online payment system for LLC, LP, and GP taxes. The payment system normally requires the entity's Delaware file number.

If you do not know the file number, use the Delaware business entity search first. Your registered agent or formation documents may also show the file number.

Step What to do
Find your Delaware file number Use your formation documents, registered agent records, or Delaware entity search.
Open the Delaware LLC/LP/GP tax payment system Use the official Delaware Division of Corporations payment page, not a random third-party notice.
Enter the file number The system uses the Delaware file number to locate the entity tax account.
Review the amount due Check whether the account shows only the $300 tax or also penalties and interest.
Pay by accepted method Delaware supports online payment methods listed in its payment system.
Save the receipt Keep the confirmation with permanent LLC records and send it to your registered agent or accountant if needed.
Use official payment sources

Delaware warns businesses to be alert to deceptive solicitations that do not come directly from the state or the entity's Delaware registered agent. Use the official Delaware site or verify with your registered agent before paying a notice.

Delaware LLC annual tax vs Delaware income tax

The $300 Delaware LLC annual tax is not the same as Delaware income tax. It is an entity-level annual tax paid to keep the Delaware LLC current with the Division of Corporations.

Whether the LLC owes Delaware income tax, gross receipts tax, payroll tax, sales-related obligations, or another filing depends on what the business does, where it operates, where owners live, and whether it has Delaware-source activity.

Tax type What it is What decides whether it applies
Delaware LLC annual tax Flat $300 annual entity tax. Whether the LLC is active in Delaware records during the tax year.
Federal income tax Federal tax reporting for the LLC or owner. Tax classification, ownership, income, deductions, and elections.
Delaware income tax State income tax exposure. Residency, Delaware-source income, and business activity.
Gross receipts tax Potential Delaware business tax category. Delaware activity and type of business.
Home-state tax Tax in the state where the business operates or owner lives. Nexus, residency, employees, property, and sales.
Do not assume Delaware means tax free

Forming a Delaware LLC does not automatically eliminate federal tax, home-state tax, payroll tax, sales tax, or foreign-owned LLC filing rules. The $300 annual tax is only one part of the tax picture.

How the annual tax affects good standing

Good standing means the Delaware entity is current enough with the Division of Corporations to receive official status proof. Unpaid annual tax, penalties, or interest can interfere with that.

Good standing matters because banks, investors, lenders, attorneys, registered agents, and other states may ask for a Certificate of Good Standing or Certificate of Status.

Situation Why good standing matters
Opening or updating a bank account The bank may ask for proof that the LLC is active and current.
Registering as a foreign LLC in another state The other state may request a Delaware certificate.
Raising money or selling the business Investors or buyers may require current entity records.
Signing larger contracts Counterparties may check entity status before signing.
Dissolving or cancelling the LLC Old taxes and penalties may need to be resolved first.

To search entity status or certificates, use: Delaware LLC Lookup .

Common Delaware LLC annual tax mistakes

Most annual tax problems come from misunderstanding the difference between Delaware LLC rules and Delaware corporation rules. LLCs do not file annual reports, but the annual tax still matters.

Mistake Better approach
Thinking no annual report means no annual cost Delaware LLCs do not file annual reports, but they still pay the $300 annual tax.
Waiting until after June 1 Pay before the deadline to avoid the $200 penalty and monthly interest.
Assuming the tax is based on profit The Delaware LLC annual tax is flat, not income-based.
Ignoring dormant LLCs An inactive business may still owe the tax if the LLC remains active in Delaware records.
Confusing Delaware tax with federal tax The $300 Delaware tax does not replace federal tax filings.
Paying a scam notice Use official Delaware sources or your registered agent for payment instructions.

This annual tax page should support the wider Delaware LLC cluster. It should link back to the main Delaware LLC guide, cost page, lookup page, registered agent page, and nonresident LLC content.

Guide Use it for
Start a Delaware LLC Formation steps, cost, registered agent, EIN, and compliance.
Delaware LLC Cost Formation fee, registered agent cost, annual tax, and optional fees.
Delaware LLC Lookup Search Delaware business entities, names, status, and registered agents.
Delaware Registered Agent Registered agent requirements, address rules, and service costs.
Delaware LLC for Non-US Residents Formation, EIN, banking, Form 5472, and nonresident compliance.
LLC Annual Fees by State Compare Delaware's annual LLC tax with other state LLC fees.

This guide is general information only and is not legal, tax, or accounting advice. Delaware LLC annual tax rules, penalties, payment systems, and related tax obligations can change. Verify official amounts with Delaware before filing, paying, cancelling, or relying on entity status.

Official Sources