Delaware franchise tax for LLCs
Delaware LLCs pay a flat $300 annual franchise tax, due June 1 every year. There's no income tax filing, no annual report to the state, no calculations. Two minutes online at the Division of Corporations site, debit card, done. The only way to mess this up is to forget — and the late penalty is steep enough to be worth a calendar reminder.
The number: $300, flat, every year
Every Delaware LLC pays the same amount regardless of revenue, profit, number of members, or activity level. A dormant single-member LLC with $0 in revenue owes $300. A 50-member LLC with $50M in revenue also owes $300. The franchise tax is a privilege fee, not an income tax.
This is different from Delaware corporations, which calculate franchise tax via either the Authorized Shares Method or the Assumed Par Value Method — that's where the famous "$180,000 Delaware franchise tax bill" stories come from. LLCs are spared. $300, flat.
The deadline: June 1
Due every June 1 for the prior calendar year. Pay it in May to be safe; the Delaware Division of Corporations site occasionally gets slow on the deadline day with everyone filing at once.
First-year LLCs: if you formed in 2026, your first $300 is due June 1, 2027. Some founders get tripped up forming in November or December and assuming they need to pay $300 within weeks — you don't. The franchise tax cycle is annual and starts the year after formation.
How to pay (2 minutes)
- Go to
icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx - Search your LLC name
- Click your entity, then "Pay Taxes/File Annual Report"
- Confirm the entity details, click through to the payment screen
- Enter card details (Visa, MasterCard, Amex, Discover, or ACH). $300 + $2.50 card processing fee.
- Save the payment confirmation PDF
That's it. No annual report to fill out (LLCs are exempt), no income calculation, no membership disclosure. The state just wants the $300.
Late penalty: $200 + 1.5% per month interest
Miss June 1 and the penalty is automatic:
- $200 late filing fee — flat, applied immediately
- 1.5% monthly interest on the $300 unpaid principal — compounds monthly
- "Not in good standing" status — the state flags your LLC publicly. Banks, lenders, courts, and contractors can see it.
Three years late and the LLC owes ~$310 in penalties + interest on top of the original $300. Five years late and the state administratively cancels the LLC entirely — reinstatement requires paying everything owed plus a $200 reinstatement fee. Pay it on time.
Registered agent fee (separate, also annual)
Delaware requires every LLC to maintain a registered agent with a physical Delaware address. If you formed through a service, you're already paying them annually:
- Northwest Registered Agent: $125/yr
- ZenBusiness: $199/yr (after Year 1 promo expires)
- LegalZoom: $249/yr
- Harvard Business Services (Delaware incorporator): $50–$100/yr
- Delaware Registered Agents Inc.: $50/yr
RA fees are billed separately by the agent on whatever month you signed up. They're not part of the franchise tax payment to the state.
If you want to switch RA providers (e.g., from $249 LegalZoom to $50 Delaware Registered Agents Inc.), file the Statement of Change of Registered Agent with the state — $50 fee, takes 1 business day. Easy way to save $150–$200/yr.
Total Delaware LLC ongoing cost
| Item | Annual cost |
|---|---|
| Franchise tax (state) | $300 |
| Card processing fee | $2.50 |
| Registered agent (cheap end) | $50 |
| Registered agent (premium) | $249 |
| Total: $352–$551/yr | depending on RA |
If you also operate in another state
This is the math that catches most "Delaware LLC" owners by surprise. Delaware-formed LLC operating in California pays:
- Delaware franchise tax: $300/yr
- Delaware registered agent: $50–$249/yr
- California foreign-qualification filing: $70 (one-time) + $20 statement of information (annual)
- California minimum franchise tax: $800/yr
- California registered agent: $50–$249/yr
Total: $1,290–$1,888/yr instead of $850/yr if you'd just formed in California. The "Delaware advantage" is structural, not financial — it's about the Court of Chancery and the body of corporate law, not lower fees. For most operating businesses, forming in your home state is cheaper. See foreign qualification for the full math.
What about Delaware corporations?
This guide is LLCs only. Delaware C-corps and S-corps use a different franchise tax calculation:
- Authorized Shares Method: $175 minimum (5,000 shares or fewer) up to $200,000 maximum
- Assumed Par Value Method: usually much cheaper for startups with high authorized shares
- Plus a $50 annual report filing fee (corporations do file an annual report; LLCs don't)
If you're a Delaware C-corp seeing a $25,000+ franchise tax bill, you're probably defaulting to Authorized Shares when you should be using Assumed Par Value. That's a different article.
Common mistakes
- Confusing franchise tax with federal income tax. They're separate. Federal income tax (or pass-through to your personal return) goes to the IRS in April. Delaware franchise tax goes to Delaware on June 1.
- Confusing the LLC franchise tax with the corporation franchise tax. LLCs always pay $300 flat. Corporations have a calculation that can run into five figures.
- Paying the registered agent thinking it covers the franchise tax. They're separate bills. The RA invoice is from the RA company; the franchise tax payment is direct to the state.
- Letting the LLC lapse. Three years late costs ~$610 in penalties on a $300 bill. Five years late and the state cancels the LLC entirely.
- Not budgeting for foreign qualification. If you operate in another state, you owe that state's fees too — usually doubling or tripling the all-in cost.
Bottom line
$300 to Delaware on June 1, every year, paid in 2 minutes online. Plus $50–$249 to your registered agent on whatever month you signed up. Calendar reminder for May 25 to pay before the rush. Done.
If you're choosing a registered agent for a Delaware LLC, Northwest at $125/yr is the privacy benchmark. If you want the formation + RA bundled, ZenBusiness Pro is the cleanest checkout. Cheapest pure RA: Delaware Registered Agents Inc. at $50/yr.