Delaware LLC Franchise Tax: $300, June 1, and What Happens If You Miss It (2026)

If you have a Delaware LLC, there is one date you need on your calendar every year: June 1. That is the deadline for your $300 annual franchise tax. Miss it, and Delaware automatically adds a $200 penalty plus 1.5% monthly interest, no invoice, no reminder, no grace period. Here is everything you need to know to stay compliant.

"Every LLC and LP formed in the state of Delaware is required to pay the annual Franchise Tax in order to remain compliant. The minimum amount due is $300 per entity, per year. If the Franchise Tax payment is not received by the June 1 deadline, the state of Delaware will automatically add a $200 late penalty, plus 1.5% interest per month on the tax and penalty." Amy Fountain, Harvard Business Services (DelawareInc.com), "Why June 1st Is an Important Deadline for Delaware LLCs," May 2025. Harvard Business Services has been forming Delaware entities since 1981. Source: delawareinc.com/blog/june-1-important-deadline-delaware-llcs/

1. The $300 Flat Annual Franchise Tax

Delaware's franchise tax for LLCs and Limited Partnerships is simple by design: a flat $300 per entity, per year. This is the same amount whether your LLC earned $0 or $1 million, whether it has one member or one hundred, whether it is a single-member LLC or a Series LLC with fifty protected series.

This flat-rate simplicity is one of Delaware's genuine advantages over states like California, which charges a minimum franchise tax of $800 per year and an additional fee based on gross income. For a small LLC owner, the predictability of Delaware's $300 flat fee makes annual budgeting straightforward.

Important note for Series LLCs: the $300 covers the parent Series LLC. Protected series, the internal series created without state filings, do not incur separate franchise tax. Registered series (those filed with the state) each owe an additional $75 per year, with a $75 late fee if missed.

2. When It's Due, June 1 Every Year

The Delaware LLC franchise tax is due on June 1 of each year for the prior calendar year's period. The state does not extend this deadline for any reason.

One important exception for new LLCs: if your LLC was formed during the current calendar year (2026), your first franchise tax payment is not due until June 1, 2027. You pay for your first full year of existence in the following year.

For 2026, the deadline falls on Monday, June 1, 2026. Delaware will not extend it.

3. How to Pay, Directly Through corp.delaware.gov

Delaware makes paying the franchise tax straightforward. You have two options:

1. Online at corp.delaware.gov: The state's online payment portal accepts credit and debit cards. You will need your LLC's Delaware file number, which appears on your Certificate of Formation. Go to corp.delaware.gov and navigate to "Pay Taxes." This is the fastest and most reliable method.
2. By phone: You can call the Delaware Division of Corporations directly at 302-739-3073 to pay by phone or ask questions about your account.

If you use a registered agent or formation service (like the one you are reading now), they may offer to file the franchise tax payment on your behalf for an additional service fee. This is a convenience service. You can always pay directly through the state portal at no cost beyond the $300 tax itself.

4. Late Penalties: $200 + 1.5% Per Month

Delaware does not send late notices. If your franchise tax is not received by June 1, the state automatically applies:

• $200 flat late penalty, added immediately on June 2
• 1.5% monthly interest, accrues on both the $300 tax AND the $200 penalty until fully paid

What this looks like in practice:

The interest compounds monthly, so the longer you wait, the more it costs. The $200 penalty is the bigger hit. It hits immediately on the day after the deadline. Put June 1 on your calendar with a reminder two weeks out, and you will never pay it.

Attorney caveat: Delaware's penalty and interest structure is set by statute and cannot be waived by the Division of Corporations. If you have questions about your specific account balance, contact the Division directly at 302-739-3073. For advice on late filing and its legal consequences, consult a licensed Delaware attorney.

5. No Annual Report Required, Unlike Most States

Here is the genuinely good news about Delaware LLC compliance: there is no annual report. Most states require LLCs to file an annual report, a document that updates membership information, officers, registered agent address, and so on, in addition to paying fees. Delaware requires LLCs only to pay the franchise tax. No report, no membership update filing, no documents submitted to the state.

Delaware corporations do have an annual report requirement (due March 1) and a more complex franchise tax calculation based on authorized shares or assumed par value capital. That is a different animal. The LLC rules described in this article apply only to Delaware LLCs and Limited Partnerships, not corporations.

6. What Happens If You Don't Pay

Delaware is systematic about non-payment. If your franchise tax goes unpaid past the deadline, here is the sequence:

1. Day after deadline (June 2): $200 penalty applied automatically. Interest begins accruing.
2. As months pass: Interest continues to compound at 1.5%/month. Your LLC's status may be noted as delinquent in the Delaware Division of Corporations database.
3. Continued non-payment: Delaware may void (administratively dissolve) your LLC. A voided LLC loses its legal standing. It cannot enforce contracts, cannot obtain a Certificate of Good Standing, and may not be able to transact business in other states.
4. Reinstatement: A voided Delaware LLC can be reinstated by paying all past-due franchise taxes, accumulated penalties, and interest. Reinstatement retroactively restores the LLC's legal standing as if it had never been voided.

The voiding and reinstatement process is real and happens to LLC owners who simply forget the June 1 date, especially those who formed a Delaware LLC for a business that then went dormant. If you have a dormant Delaware LLC, the franchise tax still applies every year until you formally dissolve the entity.

7. Franchise Tax vs. Annual Report, They Are Different Things

One of the most common points of confusion about Delaware LLCs comes from conflating the franchise tax with an annual report. For Delaware LLCs specifically:

• Franchise tax = a fee paid to the state for the privilege of being organized in Delaware. Required annually. $300 flat. Due June 1. No document submitted, just a payment.
• Annual report = a document filed with the state updating the entity's information (officers, registered agent, etc.). Delaware LLCs are not required to file an annual report. Delaware corporations are (due March 1).

You may receive solicitations from third-party services offering to file your "annual report" for a fee. For Delaware LLCs, there is no such thing. The only required annual action is paying the $300 franchise tax to the state. You do not need to hire anyone to file an annual report on behalf of your Delaware LLC.

If you receive an unsolicited letter or email claiming your Delaware LLC owes an "annual report fee" to a non-government entity, treat it as a potential scam. The only government entity collecting franchise tax from your Delaware LLC is the Delaware Division of Corporations at corp.delaware.gov.

Sources: Delaware Division of Corporations (corp.delaware.gov/alt-entitytaxinstructions/), LLC/LP franchise tax instructions, $300 flat fee, June 1 deadline, $200 + 1.5%/mo penalty confirmed April 2026. Amy Fountain, Harvard Business Services (delawareinc.com), "Why June 1st Is an Important Deadline for Delaware LLCs," May 2025, verbatim penalty language cited and verified against corp.delaware.gov instructions. Delaware LLC Act, Title 6, Chapter 18. Last reviewed 2026-04-17. This article is educational only and is not legal or tax advice. Consult a licensed Delaware attorney or CPA for guidance specific to your situation.