StartEase App

LLC Annual Fees for Delaware

All Delaware C Corporations & LLCs must pay the Delaware Franchise Tax. They also need to file an annual report. This tax applies to all corporations in Delaware. Paying on time is crucial to maintaining good standing. It helps avoid penalties. Even companies with no revenue must pay franchise tax or state tax.

Table of Contents

Delaware LLC Annual Fees

  • The annual franchise tax for LLCs in Delaware is a flat rate of $300, due by June 1st each year. We appreciate this fixed fee for its simplicity and ease of payment.

  • C Corporations in Delaware owe franchise tax and an annual report by March 1st. The fee varies by corporation. It usually falls within a few hundred dollars. This makes it manageable for most businesses.

You can pay both fees online on Delaware’s website. It helps businesses stay in good standing.

The repercussions of failing to pay these fees are significant. Failure to do so may lead to the dissolution of the LLC, a consequence observed in over 90% of states. This shows how important timely fee payments are. They are key to the continued existence and legal standing of an LLC..

Are there late fees for missing the Franchise Tax deadline?

If the tax isn’t paid on time, the state enforces:

  • A $200 late penalty
  • A monthly interest fee of 1.5%

Do I have to update my Operating agreement?

You don’t need to update your operating agreement every year. It’s an internal document, so store it with your business records. No need to submit it to the government. If you make any changes to how your business operates, update it. This includes sharing profits, adding members, and tax duties. If you need an Operating Agreement for your LLC, we offer free templates.

What are the benefits of an LLC?

An LLC offers asset protection. Your personal assets are safe if someone sues your business. This protection covers all LLC owners, whether Single-Member or Multi-Member. It doesn’t apply to Sole Proprietorships or Partnerships. LLCs are more common due to this protection. LLCs have pass-through taxation. The LLC doesn’t pay federal taxes; profits pass to members. Members report and pay taxes on personal income tax returns.

Both Single-Member and Multi-Member LLCs have pass-through taxation. Profits pass to owners' tax returns.

How to Start an LLC Step-by-Step: A Comprehensive Guide

Starting an LLC? Let’s go over the key legal steps.

  1. Selecting the right LLC name is key for starting one. Make sure it complies with state rules and is unique.
  2. Selecting a registered agent is crucial for legal compliance. They act as the official contact for your LLC, receiving important legal documents.
  3. Filing the LLC Articles of Organization establishes your LLC. It includes crucial business details like name, address, and purpose.
  4. Creating an LLC Operating Agreement is vital for any business. It outlines ownership and operating procedures . This agreement defines roles, responsibilities, and decision-making framework for members.
  5. To get an EIN for your LLC, you need a Tax ID Number from the IRS. It’s crucial for taxes and setting up bank accounts.
  6. To set up an LLC bank account, keep personal and business finances separate. This ensures accurate financial records and eases tax filing.

By following these steps, you can set up your LLC . Each phase is crucial for compliance and operational readiness.

Latest Articles

best State to form an LLC in 2024

Best State to Form an LLC in 2024

Delaware is a hotspot for global entrepreneurs creating LLCs. It’s a top choice in 2024, especially for non-U.S. residents. Why? Delaware’s unique appeal continues to

LLC Annual Fees for Delaware

All Delaware C Corporations & LLCs must pay the Delaware Franchise Tax. They also need to file an annual report. This tax applies to all