Like any business entity, a Delaware LLC comes with ongoing obligations. While Delaware is known for its business-friendly environment, there are still a few recurring fees and responsibilities that LLC owners should plan for each year. These costs aren’t overly complicated, but they do play an important role in keeping your business in good standing.
Your annual Delaware LLC fees will typically include:
While the State of Delaware does not require LLCs to file an annual report, there is still an associated annual LLC fee. The Delaware Franchise Tax is a state fee that all businesses incorporated in Delaware must pay each year to maintain their legal standing. The annual Franchise Tax cost is $300 per year, due on June 1. This annual $300 Delaware LLC fee is standard protocol for every LLC, regardless of its age, gross sales, activity, or periods of inactivity. Unlike corporations, LLCs in Delaware are not required to file an annual report, as only the tax payment is necessary.
A penalty of $200 is levied on all companies whose payment has not been received at the Delaware Secretary of State's office by June 1. There is a zero-tolerance policy for late payments, and the penalty fee will be automatically added to your Franchise Tax notice, regardless of the reason why the state did not receive it.
If you don't operate your company in Delaware, no income tax reports or accounting data will be requested by the state of Delaware, and your company is not responsible for paying Delaware income tax. The state does not require information about the members or managers of Delaware LLCs when filing the annual Franchise Tax.
As your registered agent, our team at Harvard Business Services, Inc. will alert you of the impending due date for your Delaware Franchise Tax responsibilities well ahead of time. We can even assist you in paying the $300 Franchise Tax to the State of Delaware for a small filing fee, which guarantees your punctual payment of the tax.
You can also read about some of the most common Franchise Tax Filing mistakes in our blog.
In addition to the $300 annual Delaware Franchise Tax, LLCs are required to appoint a Registered Agent, a person or place of business responsible for receiving legal documents and government notices on behalf of the LLC. The annual fee for Registered Agent services varies depending on the provider, but when Harvard Business Services, Inc. is your Registered Agent, you'll have one of the lowest Registered Agent fees in the industry.
Since maintaining a registered agent is a legal requirement, the Delaware Registered Agent fee is a regular part of your annual compliance costs. Fees vary by provider, but most services range from $100 to $300 per year.
If we are your Registered Agent, then your Registered Agent Fee is the lowest in the industry at just $50 per year, per company, guaranteed to remain $50 per year for the life of your company. Learn more about the Harvard Business Services, Inc. Registered Agent Fee guarantee.
Beyond the Delaware Franchise Tax and Registered Agent fee, there are a few additional costs that LLC owners may need to pay. One common expense is business licenses. While Delaware itself does not require a general state-level license for all LLCs, you may need to obtain licenses or permits based on your industry. These licenses often come with renewal fees that must be paid annually.
Another potential cost is foreign qualification fees. If your Delaware LLC is doing business in a state other than Delaware, you’ll typically need to foreign qualify in that state. This process often includes an initial registration fee, along with ongoing annual reports or renewal fees required by that state.
Typically, the Franchise Tax is paid directly to the Delaware Division of Corporations, typically through their online portal. As long as you have your LLC’s file number, your payment can be made electronically. This tax is due each year by June 1.
Your Registered Agent fee is handled separately and paid directly to your chosen provider. Most registered agents will send an annual invoice or renewal notice, making it easy to stay on track. Some providers also offer automatic renewal options to help prevent missed payments.
To pay your annual Delaware Franchise Tax with Harvard Business Services, Inc., visit Pay Your Delaware Franchise Tax Online. Our team can assist you in paying the $300 Franchise Tax for the State of Delaware for a small filing fee, which guarantees your punctual payment of the tax. To pay your annual Delaware Registered Agent fee, visit Pay Your Registered Agent Fee online.
If you have an account, you can also go to our Client Portal and pay both annual fees in one payment.
Do I have to pay my LLC fees if I’m not doing any business?
Yes. Delaware requires all LLCs to pay the annual $300 Franchise Tax, even if the business is inactive or generates no income. As long as your LLC remains registered with the state, these fees are mandatory. To avoid ongoing costs, you would need to formally dissolve the LLC.
Is my Delaware Franchise Tax amount the same each year?
Yes. For LLCs, the Delaware Franchise Tax is a flat fee of $300 per year. Unlike corporations, the amount does not vary based on revenue, assets, or business activity, making it predictable and easy to plan for annually.
What happens if I don’t pay my Delaware LLC annual fees on time?
If you miss the June 1 deadline, a $200 late penalty is applied, along with interest. Your LLC may also lose its good standing with the state, which can impact your ability to conduct business or secure financing.
Delaware LLC Annual Fees with HBS
If you would like to enjoy the lowest Registered Agent Fee in the state - along with the best, most reliable service - please visit our Changing Your Registered Agent page for more details, and to see how easy it is to switch Registered Agents. For any other questions about the two annual Delaware LLC fees, contact our office today.
Since 1981, Harvard Business Services, Inc. has helped form over 400,000 Delaware corporations and LLCs for people all over the world.
Harvard Business Services, Inc. guarantees your annual Delaware Registered Agent Fee will remain fixed at $50 per company, per year, for the life of your company.
Harvard can provide assistance throughout the life of your company. These custom services are the most popular with our clients: