Annual compliance

Delaware Franchise Tax Guide

Complete guide to Delaware's annual fees for LLCs and corporations — due dates, calculation methods, and how to minimize your tax.

LLC Annual Tax
$300

Flat fee per year, regardless of revenue or activity level.

Due dateJune 1
Annual report required?No
Late penalty$200 + 1.5%/mo
Corporation Annual Fees
$225+

Minimum. Can be significantly higher based on authorized shares and gross assets.

Annual report dueMarch 1
Report filing fee$50
Minimum franchise tax$175

Corporation Tax — Two Methods

You may use whichever method produces a lower result. We calculate both for every corporate client at renewal time.

Method 1: Authorized Shares Method

  • Up to 5,000 shares: $175
  • 5,001–10,000 shares: $250
  • Each additional 10,000 shares: $85

This method produces very high taxes for companies with many authorized shares — often $50,000–$200,000+ for growth-stage startups. Never use without checking Method 2.

Usually Lower

Method 2: Assumed Par Value Capital Method

Calculated based on issued shares and total gross assets from your IRS Form 1120. For startups with many authorized shares but modest real assets, this method typically produces a tax of $400–$5,000 rather than tens of thousands. Most Delaware tech startups use this method.

We file for you. Delaware Corporate Services can pay your LLC's $300 annual tax and file your corporation's annual report on your behalf. Submit a renewal request or call 1-800-345-CORP (2677) to enroll in our annual compliance service.

Submit Renewal Request →