Delaware lesson 6 of 6
The Delaware franchise tax and staying compliant
Delaware's ongoing obligation for an LLC is unusually simple to state, even if the flat amount surprises owners who expect it to scale with revenue.
The flat tax
Every Delaware LLC pays a flat $400 annual tax to the Division of Corporations, due on or before June 1 each year. It applies regardless of income, revenue or whether the LLC did anything at all that year. Unlike corporations, Delaware LLCs, LPs and GPs are not required to file an annual report alongside the payment; the tax itself is the entire annual filing obligation with the Division of Corporations.
What happens if you miss it
A late or unpaid tax accrues penalties and interest, and an LLC that stays delinquent risks losing good standing and, eventually, being administratively cancelled by the state. Confirm the current penalty and interest figures on the Division of Corporations tax pages before you rely on a number you saw elsewhere, since these are set administratively and can change.
Losing good standing in Delaware can also block you from registering as a foreign LLC in other states, since many require a Delaware certificate of good standing as part of that process.
Keeping the registered agent current
Aside from the tax, the main ongoing task is keeping the registered agent relationship active and paid. If an agent resigns or is dropped for non-payment, the LLC falls out of compliance even if the franchise tax itself is current.
Key takeaways
- A flat $400 tax is due every June 1, revenue or not.
- Delaware LLCs file no separate annual report with the Division of Corporations.
- Confirm current penalty and interest figures directly with the Division rather than relying on a cached number.
Frequently asked questions
Does Delaware require an LLC annual report like most states?
No. LLCs, LPs and GPs pay the flat annual tax instead of filing a report. Corporations are treated differently and do file an annual report.
Is the $400 tax based on income or LLC size?
No. It is a flat amount for every Delaware LLC, regardless of income, assets or activity during the year.
Official sources
Or let us file your Delaware LLC for you
Everything above is yours to use for free. If you would rather hand it over, we prepare and file the Certificate of Formation, act as your registered agent, and track your ongoing deadlines.
Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team