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LLC Annual Compliance in Delaware, USA
Things you should know
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.
Staying on top of your Delaware LLC’s annual requirements isn’t just about rules — it protects your business and helps it grow. Here’s why it matters:
Avoid Penalties and Extra Costs
If you miss the $300 franchise tax deadline, the state adds a $200 late fee plus interest. Staying compliant saves you money.
Keep Your LLC Legally Active
Filing on time keeps your LLC in “good standing” with the Delaware Division of Corporations — which is essential for running your business, getting contracts, or expanding.
Protect Your Personal Assets
Annual compliance helps preserve your limited liability status, which separates your personal property from business debts or legal problems.
Run Your Business Smoothly
If you skip compliance, the state can shut down your LLC. Filing on time keeps your operations uninterrupted and avoids unnecessary stress.
Build Business Trust
Banks, partners, and clients often check if your company is legally active. A compliant LLC looks more professional and trustworthy.
Make Future Filings Easier
Whether you’re opening a U.S. bank account or changing company details, having your LLC in good standing makes every future step simpler.
Annual Compliance Process for Delaware LLCs
Staying compliant as a Delaware LLC involves the following steps:
Pay the Annual Franchise Tax: Delaware LLCs must pay an annual flat franchise tax of $300 to the Delaware Division of Corporations. The payment is due on or before June 1st each year.
Maintain a Registered Agent: Every Delaware LLC is required to maintain a registered agent with a physical street address in Delaware. The registered agent is responsible for receiving important legal documents and state notices on behalf of the LLC.
Avoid Penalties: Failure to pay the franchise tax on time results in a penalty of $200, plus 1.5% interest per month on the total outstanding amount. Prolonged non-compliance can lead to the state revoking your LLC’s good standing status.
Receive Compliance Confirmation: After the franchise tax is paid, the LLC will be marked as “current” or “in good standing” in the state’s records, which is essential for contracts, financing, and general operations.
Common Mistakes to Avoid in LLC Annual Filing
Assuming no income = no tax (wrong)
Forgetting registered agent renewal
Using non-compliant addresses
Ignoring IRS/Form 1065/1040-NR if applicable
Filing federal taxes but missing Delaware franchise tax
What Happens If You Don’t Comply?
$200 penalty + 1.5% monthly interest
Loss of “Good Standing”
Trouble raising funding or opening bank accounts
Eventual administrative dissolution by Delaware
Checklist for Indian LLC Owners in Delaware
Quick Checklist
Bank Statement of the LLC of the USA Bank
Financials Reports of the LLC
Purchase and sales details of the LLC
Tax Details (If any)
Article of Incorporation
EIN and ITIN
Step-by-step Process to File LLC annual Compliance in Delaware
1
Maintain Financial Records
2
File Franchise Tax Report
3
Submit the Annual Report (if applicable)
4
File Federal & State Tax Returns
5
Renew Registered Agent & Business Licenses
Checklist & Document Collection
Our Compliance Manager will share a simple checklist. Submit required docs and our experts will verify them to begin the Delaware LLC annual filing process.
Filing & Tax Payment
After verification, pay for the Delaware tax and file necessary reports. Your manager will keep you updated throughout the process to ensure timely compliance.
Compliance Complete
Once filings are done, your LLC stays active and compliant. We’ll also assist in penalty payments or reinstatement if you missed earlier deadlines.
FAQs on LLC Annual Filing in Delaware, USA
Get answers to all your queries
Do I need to file an annual report for my Delaware LLC?
No, Delaware doesn’t make LLCs file annual reports; just pay the yearly tax.
How much is the annual tax for a Delaware LLC?
It’s a flat $300 every year.
When do I have to pay it?
You need to pay it by June 1st each year.
How do I pay this annual tax?
You can pay it online through the Delaware Division of Corporations; it’s quick and simple.
What happens if I miss the deadline?
You’ll get a $200 late fee plus monthly interest until it’s paid.
I didn’t earn anything with my LLC. Do I still need to pay?
Yes, Delaware charges the fee even if your business didn’t make any money.
How can I avoid future fees if I’m shutting down the business?
Officially cancel your LLC with the state before June 1st to avoid next year’s tax.
I’m registered in Delaware but based elsewhere. Do the rules change?
Yes, foreign (out-of-state) LLCs don’t pay the $300 tax but must file a report and pay another fee.
What is the “franchise tax”?
It’s just another name for the $300 Delaware charges LLCs each year.
What if I don’t pay the tax for a few years?
Your LLC can lose its reputation and eventually be closed by the state.
Do I still need to file anything with the IRS?
Yes, federal tax forms still apply, depending on how your LLC is set up.
Do I need to hold yearly meetings for my LLC?
No, Delaware doesn’t require meetings or meeting records for LLCs.
Do I need a registered agent every year?
Yes, you must always have a Delaware registered agent to keep your LLC active.
Can I restore my LLC if it was closed due to unpaid taxes?
Yes, you can get it back by paying all overdue taxes, penalties, and filing reinstatement forms.
Do the rules change if I’m the only owner of my LLC?
No, they’re the same whether your LLC has one owner or several.
Can I pay the annual tax early?
Yes, you can pay early online or ask your registered agent to do it for you.
Will Delaware remind me when it’s time to pay?
You’re responsible for keeping track of the deadline. Delaware won’t remind you for payment on time.
Do I need to renew my Certificate of Formation every year?
No, you file that only once while starting your LLC.
Do I need a business license in Delaware every year?
Only if you’re actually doing business in Delaware. If you’re not, you probably don’t need one.
Can I handle all this myself, or should I hire an accountant?
You can handle the $300 tax yourself, but for federal taxes or more complex stuff, an accountant can definitely help.
LLC Annual Compliances in Delaware, USA
Fulfill all your Delaware LLC Annual Compliance needs; single or multi-member, with Ebizfiling. Starting at just INR ₹1,15,999 only.
Supported by expert CAs and CSs, with 5,000+ startups onboard.