Delaware LLC Annual Franchise Tax: What You Owe in 2026 (And How to Pay It)

Delaware has long been the gold standard for LLC formation — nearly 70% of Fortune 500 companies are incorporated there, and for good reason. Flexible laws, a dedicated business court, and a predictable regulatory environment make it a perennial favorite. But when business owners form a Delaware LLC without fully understanding the ongoing compliance obligations, the Delaware LLC annual franchise tax often comes as an unwelcome surprise.

This guide explains exactly what the Delaware LLC annual franchise tax is, how much it costs in 2026, when it’s due, how to pay it, and what happens if you miss the deadline. If you’re still in the formation stage, services like Northwest Registered Agent can handle your Delaware registration and keep you on top of compliance deadlines from day one — their registered agent plan ($125/year) includes compliance reminders that many first-time owners genuinely rely on.

What Is the Delaware LLC Annual Franchise Tax?

Despite the intimidating name, the Delaware LLC annual franchise tax is not a tax on your income or revenue. It’s a flat annual fee that Delaware charges every LLC registered in the state — a kind of “license to exist” that keeps your entity in good standing with the Delaware Division of Corporations.

The key distinction to understand: Delaware LLCs pay a simple flat fee, while Delaware corporations face a much more complex calculation involving authorized shares or assumed par value capital methods (which can run into tens of thousands of dollars for large companies). If you’ve ever read alarming headlines about Delaware franchise tax bills, those almost always refer to corporations, not LLCs.

For LLCs — including most small businesses, holding companies, and startups — the annual franchise tax is refreshingly straightforward.

How Much Is the Delaware LLC Annual Franchise Tax in 2026?

The Delaware LLC annual franchise tax for 2026 is $300 per year. That’s it. No sliding scale, no calculation based on members or revenue, no minimum capital threshold. Every LLC, whether it’s a single-member freelancer’s entity or a multi-million-dollar investment vehicle, pays the same $300.

Here’s what the full annual cost picture looks like for a Delaware LLC:

Obligation	Fee
Annual franchise tax	$300
Registered agent (required)	$50–$300/year
State filing fee (one-time, at formation)	$110

The registered agent fee is separate and required by law — Delaware mandates that every LLC maintain a registered agent with a physical Delaware address. If you’re not located in Delaware (most people aren’t), you’ll need to hire a service. Northwest Registered Agent offers registered agent service for $125/year and includes automatic compliance alerts. ZenBusiness bundles registered agent service into its paid plans starting at $199/year for the first year. Unlike LegalZoom, which charges $299/year for standalone registered agent service, both Northwest and ZenBusiness offer more competitive pricing for ongoing compliance.

For a deeper look at all-in formation costs, see our guide on how much it costs to form an LLC — Delaware has some nuances worth understanding before you commit.

When Is the Delaware LLC Franchise Tax Due?

The Delaware LLC annual franchise tax is due June 1 of each year. This is a hard deadline — there are no extensions available for LLCs.

The tax covers the current calendar year. So the payment you make on or before June 1, 2026 covers your 2026 franchise tax obligation. Newly formed LLCs are required to pay their first franchise tax by June 1 of the year following formation — so if you formed your LLC in October 2025, your first payment is due June 1, 2026.

This annual cadence is easy to miss, especially for single-member LLCs where there’s no accounting staff watching the calendar. I’ve seen too many business owners — particularly those who formed a Delaware LLC for an online business or side project — get blindsided by a penalty notice because the June 1 deadline slipped through the cracks.

What Happens If You Miss the Deadline?

Late payment of the Delaware LLC annual franchise tax carries real consequences:

$200 late penalty — assessed immediately after June 1 if the tax has not been paid
1.5% monthly interest on the unpaid balance (the $300 tax plus the $200 penalty)
Loss of good standing — your LLC’s status becomes “delinquent” in Delaware’s records
Risk of voiding your LLC — sustained non-payment can eventually result in Delaware canceling your LLC

Loss of good standing is more than a clerical issue. If your LLC is delinquent, you can’t legally obtain a Certificate of Good Standing, which many banks, investors, vendors, and government contracts require. You also can’t qualify your LLC to do business in another state (called “foreign qualification”) while delinquent. According to the Delaware Division of Corporations, restoring a cancelled LLC requires filing a Certificate of Revival plus paying all back taxes, penalties, and interest — which adds up quickly.

If your LLC has been delinquent for multiple years, the reinstatement process can easily cost more than $1,000 in accumulated fees, even for a simple LLC.

How to Pay the Delaware LLC Annual Franchise Tax

Payment is made online through the Delaware Division of Corporations website. Here’s the step-by-step process:

Go to the Delaware Division of Corporations at corp.delaware.gov
Click on “File Annual Report / Pay Taxes” (note: LLCs don’t file an annual report — the system will route you to the tax payment page)
Enter your LLC’s file number (found on your original Certificate of Formation or any official Delaware correspondence)
Confirm your entity information
Pay via credit card or ACH

The entire process takes about five minutes once you have your file number handy. Delaware does not send paper invoices or reminders — it’s entirely your responsibility to remember and initiate payment. This is one of the strongest arguments for maintaining a professional registered agent service: a good registered agent will send you compliance reminders well before June 1.

Important note: LLCs do NOT file an annual report in Delaware. This is a common point of confusion because Delaware corporations must file both a franchise tax return and an annual report. For LLCs, it’s purely a tax payment — no paperwork required.

Delaware LLC vs. Delaware Corporation: Understanding the Tax Difference

This is where many business owners get confused — and sometimes panicked. If you search “Delaware franchise tax,” you’ll find horror stories about $50,000 or $80,000 franchise tax bills. Those figures apply exclusively to Delaware corporations using the Authorized Shares Method of calculation.

Under the Authorized Shares Method, a corporation with 10 million authorized shares can owe over $90,000 in franchise tax annually. The alternative Assumed Par Value Capital Method typically produces a lower bill for corporations with large share authorizations — but it’s still complex and potentially significant.

Delaware LLCs are entirely exempt from this complexity. The $300 flat fee applies regardless of your capitalization, member count, or revenue. This is one reason many venture-backed startups that need equity structures choose to incorporate as corporations in Delaware (accepting the complexity) while investors and holding entities often prefer the LLC structure.

If you’re still deciding on the right structure, our comparison of LLC vs S-Corp tax treatment and our overview of what is an LLC cover the tradeoffs in detail.

Is a Delaware LLC Worth It? Weighing the Annual Cost

For business owners who don’t live or operate in Delaware, the honest calculus involves comparing the benefits of Delaware’s legal environment against the ongoing costs:

Annual Delaware LLC cost (non-resident):

$300 franchise tax
~$125–$300 registered agent fee
Foreign qualification fee in your home state (varies: $50–$750)
Potentially, annual report fees in your home state for the foreign-qualified entity

Annual home-state LLC cost (e.g., Texas):

$0 franchise tax for most small LLCs (Texas has a no-tax-due threshold of $2.47 million in revenue)
$0 registered agent fee if you serve as your own
No foreign qualification required

For many small businesses with no particular need for Delaware’s legal flexibility or investor requirements, forming in your home state is simpler and cheaper. Delaware makes the most sense when you’re planning to raise outside capital (investors often require Delaware C-corps or Delaware LLCs), need access to the Court of Chancery for complex disputes, or have multi-state operations where Delaware’s legal clarity is an advantage.

Our guide on the best state to form an LLC in 2026 digs into this comparison with state-by-state fee data.

Maintaining Delaware LLC Good Standing Beyond the Franchise Tax

The franchise tax is the primary ongoing obligation, but Delaware LLC compliance in 2026 also includes:

Maintaining a registered agent with a Delaware address at all times — failure to do so is a separate compliance violation. See our guide on what is a registered agent for a full breakdown of what this role involves.
Keeping internal records current — while Delaware doesn’t require you to file an annual report, you should maintain an up-to-date operating agreement, member records, and resolutions for any major decisions.
BOI reporting — as of 2024, most LLCs are required to file a Beneficial Ownership Information (BOI) report with FinCEN under the Corporate Transparency Act. This is a federal requirement separate from Delaware’s state obligations.
Federal and state income taxes — the franchise tax does not cover any income tax obligations, which are handled separately based on your LLC’s tax classification.

Choosing a Formation Service for Your Delaware LLC

If you’re forming a new Delaware LLC or need help managing compliance for an existing one, the right formation service makes a meaningful difference.

Northwest Registered Agent is the top pick for Delaware LLCs where ongoing compliance is a priority. Their $39 formation fee (plus Delaware’s $110 state fee) is among the lowest in the industry, and their registered agent service ($125/year) includes document scanning, compliance alerts, and genuinely responsive customer support. Their privacy-first approach — they use their own address on public documents to shield your personal information — is a significant differentiator.

ZenBusiness is a strong alternative if you want a more guided formation experience. Their Starter plan ($0 + state fees) is compelling for budget-conscious founders, though registered agent service is an add-on. Their dashboard makes it easy to track upcoming compliance deadlines, including the June 1 franchise tax due date.

LegalZoom is the most recognized name but typically the most expensive option for comparable services — formation packages start at $79 and registered agent service runs $299/year, compared to Northwest’s $125.

For a full head-to-head comparison, see our best LLC formation services roundup or the detailed Northwest Registered Agent review.

Frequently Asked Questions

How much is the Delaware LLC annual franchise tax in 2026?

The Delaware LLC annual franchise tax is a flat $300 per year in 2026. This rate has been consistent for several years and applies equally to all LLCs regardless of size, revenue, or number of members.

When is the Delaware LLC franchise tax due?

The Delaware LLC annual franchise tax is due on June 1 of each year. There are no extensions. Payments made after June 1 are subject to a $200 late penalty plus 1.5% monthly interest on the total unpaid amount.

Do Delaware LLCs have to file an annual report?

No. Unlike Delaware corporations, Delaware LLCs are not required to file an annual report. The only ongoing state obligation is paying the $300 annual franchise tax by June 1.

What happens if I don’t pay the Delaware LLC franchise tax?

Your LLC becomes delinquent in Delaware’s records. You’ll owe a $200 late penalty plus 1.5% monthly interest. Sustained non-payment can result in Delaware voiding or canceling your LLC — and reinstatement requires paying all back taxes, penalties, and interest, plus a revival filing fee.

Is the Delaware LLC franchise tax based on revenue or income?

No. The $300 fee is a flat annual tax unrelated to your LLC’s revenue, profit, or number of employees. This distinguishes it sharply from Delaware’s corporation franchise tax, which can run into the tens of thousands of dollars based on authorized shares.

Do I need a registered agent to pay the Delaware LLC franchise tax?

You need a registered agent to maintain a valid Delaware LLC — it’s required by law. However, paying the franchise tax itself is done directly through the Delaware Division of Corporations website, not through your registered agent. That said, a good registered agent service will remind you about the June 1 deadline.

Can I form a Delaware LLC and operate in another state?

Yes, but you’ll need to foreign qualify in any state where you’re doing business. That typically involves an additional filing fee, annual report, and state-level fees in your operating state — on top of Delaware’s $300 franchise tax. For many small businesses, this makes forming in your home state the more cost-effective option.

How do I know if my Delaware LLC is in good standing?

You can check your LLC’s standing status for free through the Delaware Division of Corporations entity search. Good standing requires an active registered agent on file and no outstanding franchise tax obligations.

The Bottom Line

The Delaware LLC annual franchise tax is one of the most straightforward compliance obligations in business — a flat $300, due June 1 every year, paid online in about five minutes. What catches business owners off guard isn’t the amount; it’s the deadline. Delaware sends no reminders, so the responsibility falls entirely on you.

If you have a Delaware LLC in 2026, mark June 1 on your calendar now. If you’re just starting out and still deciding where to form your LLC, weigh the $300 annual tax alongside registered agent costs and any foreign qualification expenses in your home state. For many small businesses, the total annual compliance cost for a Delaware LLC runs $425–$600 per year — a perfectly reasonable figure if Delaware’s legal environment serves your needs, but worth comparing against your home state’s costs.

Whether you’re forming a new LLC or cleaning up compliance for an existing one, the right registered agent and formation service can take the administrative burden off your plate. Northwest Registered Agent and ZenBusiness are the two services we consistently recommend for Delaware compliance support.

The author name used in this article may be a pen name or pseudonym and is used for illustrative and editorial purposes only. This article is for informational purposes only and does not constitute investment, tax, or legal advice. Tax obligations and state requirements can change — always verify current fees and deadlines with the Delaware Division of Corporations or a qualified professional. Consult qualified professionals before making financial or legal decisions.