What Is Delaware LLC Annual Compliance?
LLC annual compliance in Delaware refers to the mandatory annual franchise tax payment that each LLC must make to remain in good standing with the Delaware Division of Corporations. Unlike corporations, Delaware LLCs are not required to file an annual report.
The franchise tax is a fixed annual fee of $300, regardless of the company’s income or business activity. Additionally, every LLC must maintain a registered agent with a physical address in Delaware to receive legal and official correspondence from the state.
Failure to fulfill these compliance obligations can lead to significant penalties, loss of good standing, and eventually, administrative cancellation of the LLC by the state.
LLC Annual Compliance in Delaware, USA
- All Limited Liability Companies incorporated in the State of Delaware, USA are not required to file an Annual Report. However, they are required to pay an Annual Tax in the state.
- Both Single Member LLC and Multi Member LLC are required to pay an Annual Franchise Tax by 1st of June each year. (Due date is Jan 1st to May 31st.)
- Taxes for Limited Liability Companies are due on or before June 1st of each year.
- If not filed on time, the LLCs shall have to pay a penalty for non-payment or late payment $200.00 including the interest at the rate of 1.5% per month on the tax and penalty.
- If it is a Multi Member LLC, Federal Partnership Income Tax Return in Form 1065 needs to be filed on or before 15th April every year.
- Also, Multi Member LLC are required to file Delaware Informational Tax Return in Form 300-I on or before 15th March every year.
- Also, both Single Member LLC and Multi Member LLCs are required to file US Non-resident Alien Income Tax Return & Delaware Individual Non-resident Income Tax Return on or before 15th of April every year.
Suggested Read: LLC Tax Rate
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