Delaware franchise tax
An annual flat $300 tax due June 1 for Delaware LLCs; variable for Delaware Corporations using Authorized Shares or Assumed Par Value methods.
Definition
Under 6 Del. C. § 18-1107(b), every Delaware LLC pays a flat $300 annual franchise tax due June 1, regardless of revenue or member count. Delaware Corporations use different rules under 8 Del. C. § 503, with two calculation methods (Authorized Shares minimum $175, Assumed Par Value minimum $400, maximum $200,000).
Context
Delaware LLCs do not file an annual report (unlike Delaware Corporations, which must file by March 1). The $300 LLC franchise tax is paid online at corp.delaware.gov by entering the entity's Delaware file number. Delewarellc sends free reminders 30-60 days before the deadline.
Example
A Delaware LLC formed in May 2026 owes its first $300 franchise tax by June 1, 2027. Payment is made online at corp.delaware.gov in about 5 minutes.
Common pitfalls
- Missing June 1 triggers $200 penalty plus 1.5% monthly interest.
- Two consecutive years of non-payment triggers state-level entity cancellation.
- Restoring a cancelled LLC requires a Certificate of Revival plus all back-owed taxes.