Delaware Annual Franchise Tax

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Delaware LLC Annual Franchise Tax

How to form an LLC in Delaware
This Quick Start Guide is a brief overview of how to form an LLC in Delaware.

Detailed Lessons:

 

Delaware LLC costs:
LLC formation cost: $90 (one-time fee)
Annual franchise tax: $300 (every year)

Need help?
Hire a company to form your Delaware LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(check out Northwest vs LegalZoom)

Delaware LLCs do not have to file an Annual Report (like Corporations do), but they do have to pay a flat-rate Annual Franchise Tax of $300 each year.

The $300 tax must be paid by every LLC formed in Delaware, regardless of income or business activity. This is a requirement to keeping your LLC in compliance with the state.

Method of Filing
Your Annual Franchise Tax can only be paid online and cannot be filed by mail. You can make payment using a credit card or your checking account.

Fee
$300

Due Date
Your Annual Franchise Tax must be paid by June 1st every year.

Your first payment is due the calendar year following the year that your LLC was approved.

For example, if your LLC was approved on March 12th, 2017, your first Annual Franchise Tax of $300 will be due by June 1st, 2018.

Penalty
If you do not file your Annual Franchise Tax by June 1st, you will be charged a late fee of $200. Your account will also be penalized at 1.5% interest for every month it remains unpaid.

Business Entity File Number
You’ll need your Business Entity File Number (also known as your “File Number”) in order to make payment online. You can find your LLC’s File Number by searching the database here.

Need Help?
If you need help locating your File Number, you can contact the Franchise Tax Division by phone (302-739-3073, option 3) or email ([email protected]). Their phone support hours are 8am to 4:30pm, Monday through Friday.

Reminders
The state will send reminder notifications by mail to your LLC’s Registered Agent. They are sent in February each year.

We also recommend putting a repeating reminder on your calendar because even if you don’t receive a reminder notice, it’s still your responsibility to pay the tax every year.

Recommendation
We recommend paying your Franchise Tax early (you can begin paying in February) to avoid any late fees. Many people pay this tax in April, since they’ll be paying other taxes as well at that time.

Delaware LLC Annual Franchise Tax Payment Instructions

1. Visit the state’s online filing system:
https://icis.corp.delaware.gov/Ecorp/logintax.aspx?FilingType=FranchiseTax

2. Enter your LLC’s File Number and click the “Continue” button.

3. Review the tax that is due (if applicable, late fees will show) and then click the “Pay Taxes” button.

4. Select “Pay Full Amount” and leave the box to the right blank.

5. In the “Payment Type” drop down list select whether you will pay with your checking account or with a credit card.

6. Enter your name, billing information, phone, and email, then click the “Submit” button.

Congratulations, your Delaware LLC Annual Franchise Tax has been paid!

You will receive an email confirmation from the state showing that you have made the payment successfully. We recommend printing this email and keeping it with your business records.

There is nothing else you need to do after making payment. Just make sure to pay your Annual Franchise Tax each year going forward.

Delaware Secretary of State Contact Info

If you have any questions about your LLC’s Annual Franchise Tax, you can contact the Franchise Tax Division (of the Delaware Secretary of State) at 302-739-3073 (option 3). Their hours are Monday through Friday from 8am to 4:30pm Eastern Time.

Their email is: [email protected]

Matt Horwitz
Founder & Educator, LLC University®
Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! LLC University® teaches people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your business journey.
Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

2 Comments

  1. joan January 19, 2018

    Good morning Mr. Horwitz,

    I’m so great full your available to assist first time LLC companies. I made mine in Delaware in 2016. Creative charters International & Travel LLC. I was hoping my Son would join me he’s still thinking about it. Can I add my 3 yr old grand daughter tho. It’s just me, for now. I was told by the agent I did not need any formal documents 4 my LLC in Delaware. I do my business from home in Ft. Myers fl. I did file with the State, and local gov. Which I was told my an account I didn’t really have too. So I’m not really sure! So did so anyway.

    I have down loaded the form operating agreement form , for internal use, from your site, thank you. I also need to fill out an Annual tax form. Delaware charges 300.00 flat fee every yr.
    I am building a website luxurycharterstravel.com it’s online & says under maintenance, at this time. It’s going to provide luxury yacht, jet charters, empty leg jet charters, travel. Some if not most of the travel will be through affiliate companies, Disney cruises, Delta airlines, and others where my site will make a percentage 4 each sales. They provide all the info, for my site and I get my commission, at the end of the month or every 2 weeks.
    For accounting purposes, I’m not sure how it will work, on the site. I’ve been thinking, of using Wave accounting which also accepts credit cards & is free. I don’t know if you’ve heard of them. It can be used 4 the air charters, & empty legs. They are competing with Quick books. I’m not sure if this program will be able to calculate the websites affiliate earnings or not or the one’s with their own booking format on my site? It’s my first website. I’m using inmotionhosting.com, with boldgrid & wordpress. They advertise setting up your website in no time at all, of course. I’m going on my third month. I went this way because I own my site, it’s not leased. Anyway, it’s trial & error, for me, I’m so anxious, to get it public and hopefully look very professional alto there are doubts. There was a computer class teach, at a university, at one time who was advertising building new websites, for clients, with his class, for 10.00 a month. Not so now.
    month. Not the case now.

    ? how to I list my website(s) etc under my LLC & for protection, I have 3 other websites which I plan, to use, for marketing charters, travel as well. Where do I list cars, etc.
    Gradually I want to have memberships on line, for customers who want to use my site(s), to book their private jets when ever they wish, using a personal card. It would be nice some day, to have members, in my LLC as well. Altho I’m not sure how this will work?

    Well, if I didn’t confuse you that’s amazing. If you can answer my questions that will be very helpful and appreciated greatly.

    Best regards,

    Joan

    I hope I explained this ok.

    thank you so much for helping

    best regards,

    Joan

    reply
    • Matt Horwitz January 19, 2018

      Hi Joan, I’ve heard of Waves, but have not fully reviewed their software. I’m also not sure if they track affiliate earnings. I’d recommend speaking with an accountant. We have info on that here. The way to list the website under your LLC is update the ownership information inside your domain registrar as well as your hosting account. And also make the copyright notice and any other legal page (disclaimer, terms of service, etc.) mention the LLC so the public knows who they are doing business with. And regarding a website membership, that is completely different from LLC members and you don’t want to get the two confused. Hope that helps.

      reply

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