Every Delaware LLC pays $300/year regardless of income. Here is how it works and why it matters for your cost calculation.
By Alif Al Razi, Tax & Compliance Lead, Anonymousllc.co
Delaware\'s franchise tax for LLCs is a flat $300 annual fee. It is not based on income, revenue, or assets. Whether your LLC earns $0 or $10 million, you pay $300. This is fundamentally different from Delaware\'s corporate franchise tax, which uses complex share-based calculations. LLC franchise tax is simple: $300, every year, no exceptions.
The franchise tax is due June 1 of each year. The first payment is due June 1 following your LLC\'s formation. If you form in January 2026, your first franchise tax is due June 1, 2026. If you form in October 2026, your first franchise tax is still due June 1, 2027 — there is no proration for the first partial year.
Miss the June 1 deadline and Delaware charges a $200 late penalty plus 1.5% monthly interest on the unpaid amount. If the franchise tax remains unpaid, Delaware can forfeit your LLC — essentially suspending its good standing. Reinstatement requires paying all back taxes, penalties, and a reinstatement fee. Set a calendar reminder for May.
Payment is made online through the Delaware Division of Corporations portal at corp.delaware.gov. You can pay by credit card, debit card, or ACH. The portal requires your LLC\'s file number (assigned at formation). Anonymousllc.co provides this number in your formation documents.
| State | Annual state obligation | Amount |
|---|---|---|
| New Mexico | None | $0 |
| Wyoming | Annual report | $60 |
| Delaware | Franchise tax | $300 |
| Nevada | Business License + Annual List | $350 |
Delaware\'s $300 franchise tax is 5x Wyoming\'s annual report and infinity-x New Mexico\'s $0. Over 10 years, this adds up to $3,000 in franchise taxes alone — not including formation costs or RA renewal. This is the primary reason most non-VC buyers should choose Wyoming over Delaware.
No. The franchise tax is a payment obligation, not a disclosure obligation. Paying the franchise tax does not add your name to any public record. Your Delaware LLC remains anonymous regardless of franchise tax status. However, if you fail to pay and the LLC is forfeited, the LLC cannot conduct business — which indirectly affects your operations.