Educational Resource — June 2026 Delaware tax law can change. Verify current rates and deadlines directly with the Delaware Division of Corporations (corp.delaware.gov).

Delaware LLC Tax Overview

Delaware is famous as a business-friendly state — it has no sales tax, no personal property tax, and courts that are well-versed in business law. But Delaware does have annual LLC tax obligations that all LLC owners must know about.

There are two potential tax obligations for Delaware LLCs:

  1. $300 Annual LLC Tax: A flat fee due every June 1. Applies to virtually all Delaware LLCs.
  2. Delaware State Income Tax: Only applies if the LLC conducts business inside Delaware. Most Delaware-formed LLCs that operate elsewhere do not owe Delaware income tax.

The $300 Annual LLC Tax

Delaware charges a flat $300 annual tax on every LLC that is formed in Delaware (or registered as a foreign LLC in Delaware). This tax is sometimes called a "franchise tax" but Delaware calls it the "Annual LLC Tax" to distinguish it from the corporation franchise tax (which uses a different calculation).

  • Amount: $300 flat — the same for every LLC regardless of income, size, or activity
  • Who pays: All Delaware domestic LLCs and all foreign LLCs registered in Delaware
  • Zero income LLCs: Yes, still owe $300 even with zero revenue
  • Payment method: Online at corp.delaware.gov, by check, or through a registered agent service
Delaware LLCs vs Delaware Corporations

Note: Delaware corporations (not LLCs) use a different and more complex franchise tax calculation method. The $300 flat annual tax applies specifically to LLCs. Corporations can owe significantly more depending on their authorized shares and value.

When Is the Delaware LLC Annual Tax Due?

  • Annual deadline: June 1 of each year
  • 2026 deadline: June 1, 2026 (for tax year 2025)
  • No separate annual report: Delaware does not require LLCs to file a separate annual report — the $300 payment itself is the annual obligation
  • Late penalty: $200 + 1.5% interest per month on unpaid amounts

Delaware Income Tax for LLCs

Delaware has a personal income tax rate of 2.2%–6.6% on Delaware-sourced income. For LLC owners:

  • If your LLC is a disregarded entity or partnership, LLC income passes through to your personal Delaware tax return (if you have Delaware-sourced income)
  • If your LLC operates entirely outside of Delaware, you generally owe no Delaware income tax — only the $300 annual LLC tax
  • Delaware has no sales tax, which is a significant benefit for retail businesses

Delaware LLC Operating Outside Delaware

The most common Delaware LLC scenario is a business owner who forms an LLC in Delaware (for legal/liability reasons) but operates their business in a completely different state — or online/internationally. In this case:

  • You owe the $300 Delaware annual LLC tax every June 1 — no exceptions
  • You generally do not owe Delaware income tax (since you're not earning income in Delaware)
  • You may owe franchise tax, annual reports, and income tax in your home state where you actually operate
  • You may also need to "foreign qualify" your Delaware LLC in your operating state, adding that state's fees on top of Delaware's

Foreign-Owned Delaware LLCs

Non-US residents who form Delaware LLCs (a common arrangement) still owe the $300 annual LLC tax. In addition, they face federal IRS filing obligations:

  • Form 5472 + pro forma Form 1120 (for foreign-owned single-member LLCs)
  • Potential ITIN requirements if they have US-taxable income

See: Delaware LLC for Non-US Residents →

Penalties for Not Paying the Delaware LLC Tax

  • Late penalty: $200 flat penalty assessed after June 1
  • Interest: 1.5% per month on unpaid taxes and penalties
  • Loss of good standing: Unpaid taxes put your LLC "not in good standing" with Delaware
  • Void certificate: Delaware can void your LLC's Certificate of Formation after extended non-payment, effectively dissolving it under state law

Official Sources

Frequently Asked Questions

Delaware LLC Tax FAQs

Delaware charges a flat $300 annual LLC tax. This is a fixed fee — it does not change based on income, revenue, or the number of members. It applies equally to a dormant LLC with zero revenue and a multi-million-dollar LLC.
The Delaware LLC annual tax is due on June 1 of each year. For example, for tax year 2025, payment is due June 1, 2026. If June 1 falls on a weekend or holiday, the deadline moves to the next business day.
Delaware does have a state income tax (2.2%–6.6%), but LLCs that do not conduct business in Delaware typically do not owe Delaware state income tax. If your LLC only operates outside of Delaware (a common arrangement — forming in Delaware while operating elsewhere), you generally only owe the flat $300 annual LLC tax, not Delaware income tax.
Yes. The $300 annual Delaware LLC tax applies to all Delaware LLCs regardless of where the owner lives. A foreign-owned Delaware LLC still owes $300 per year to the state of Delaware. This is separate from and in addition to any federal IRS filing obligations.
Failure to pay the $300 annual tax by June 1 results in a late penalty of $200 plus interest at 1.5% per month. If taxes remain unpaid for multiple years, the state can void your LLC's certificate of formation, which means your LLC is no longer in good standing and loses its legal protections.

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